Indian Rupee appreciated against the US currency in early trade on dollar selling by banks and exporters amid hopes of firm opening on the domestic stock markets in line with better trends on other Asian bourses U.S. Dollar had a volatile trading day with the market testing the previous day’s highs but spent most of the day consolidating gains. Shares rallied hard into the close and this helped the Dollar to gain against the Yen. The January NAHB Housing Market Index dropped to 8 vs. 9 expected in January. The market focused on the upcoming confirmation hearing with anticipation of quick implementation of Obama’s stimulus plan. Looking ahead for December Housing starts are forecast at 0.61M and Weekly Jobless Claims are forecast at 540K.
Technical Outlook:
USDINR chart pattern gives mixed signals and currency is expected to trade in the range of 48.71-49.10 levels for the day. With good support seen at 48.64 levels . key resistance is seen at 49.15 levels. Stochastic is seen trending down and the currency is seen trading on the moving average only break on either sides can confirm the trend.
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