Rupee dropped in early trade tracking the dollar's strength against other major currencies overseas and losses in regional stock markets. U.S. Dollar the mood darkened considerably yesterday as the much anticipated speech from Geithner failed to deliver and what started as profit taking turned into a rout. Banking stocks were under pressure as Geithner lacked clarity in the direction the new administration will take. Looking ahead for December Trade Balance forecast to improve to -36Bn.
Technical outlook:
USDINR chart pattern gives an indication of bullish note for the day. Since the currency has opened with a gap though Stochastic is seen trending up supporting the bull view the currency is expected to test 48.72 levels as gap filling process and take support at 49.65. Trading range is expected between 48.75 - 49.02.With good resistance at 49.12 level for the day.
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