June 22, 2016

Is the USDINR Braced to test All time High?

After Dr.Raguram Rajan’s(RBI Governer) announcement that he will not continue in office for the second term, stock markets on Monday reacted with gap down and recovered on relief of BRexit fears. However from the currency front USDINR ended at 67.6 with strong momentum . EOD sentiment is holding positive and also the coral trend indicator turns greens indicating that a possible uptrend from here on.

Historically, the Indian Rupee reached an all time high of 68.90 in 26th FEB 2016 with a double top formation ( a day before Union budget 2016). On the weekly charts too USDINR is gaining momentum and the underlying trend is strong so far.

USDINR Weekly Charts

As the Economic Times rightly mentioned "Rajan was at the helm of steering the rupee amid extreme volatility in the 2013 taper episode, the rating agency said, adding that his effective resignation could push the currency on the backfoot as an immediate reaction."

Our expectation is that possibly one could expect USDINR to trade in the 69-70 range striking all time high before the end of July 2016.

Source: http://www.marketcalls.in/forex/usdinr-braced-test-time-high.html

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