Indian Rupee inched up -jan 19

Indian Rupee inched up propped by firmer Asian stock markets but gains may be limited by importer dollar buying. U.S. Dollar had a volatile trading session initially weakening throughout the day as markets gained confidence and equities markets rallied in Europe and Asia. Weak US data and concerns about Citibank and Bank of American sent US stocks lower at the start of the session which helped the Dollar to strengthen but a late rally allowed this safe haven demand to subside. December CPI fell -0.7% broadly as expected while the core was flat. Of concern was Industrial Production which fell 2% in December while Capacity Utilization dropped to 73.6%. Looking ahead for Public Holiday in the US.
USDINR chart pattern gives bearish signals and currency is expected to trade in the range of 48.48-48.77 levels for the day. With good support seen at 48.45 levels . key resistance is seen at 49.80 levels. Stochastic is seen trending down and the currency is seen trading below the moving average but caution required as market is trading on the lower Bollingers.