Mtechtips MCX-SX USDINR INTRADAY trading analysis 17-03-2016

Mtechtips MCX-SX USDINR INTRADAY trading analysis 17-03-2016

MTECHTIPS :- Dollar/rupee opens at over two-month low and trading at 66.9675, down by 0.66% on likely overseas fund inflows into local shares after the Federal Reserve hinted at a slower than expected pace of interest rate hikes in 2016.The Fed opted to leave its key policy rate unchanged at 0.25% to 0.50% today, while also lowering its projections for the pace of future rate hikes.Nevertheless, as inflation continues to rise and global risks diminish further, we expect the Fed will resume raising interest rates in June.The central bank forecasted rates would continue to raise in 2016, but low inflation, problems overseas and turbulent stocks have forced the Fed to keep its ultra-accommodative policy in place.The Fed now signals two rate hikes in 2016 instead of four envisioned at December 2015 policy.

USDINR retraced from the day high 67.6075 and tested 67.3825 before closing at 67.4025 levels. A long bearish candle stick formation on EOD chart is indicating downwards move 67.00 and below Today, any rise towards 67.00-67.10 is expected to attract huge selling activities target would be 66.85-66.55. Stop loss above 67.25.

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