Rupee appreciated by 16 paise against the US currency in opening trade following selling of dollars by banks and exporters on expectations of further recovery in the domestic bourses in line with firming Asian markets .U.S. Dollar experienced another wave of weakness against most of the majors as Wall St rallied for the 3rd day. US Retail Sales were better than expected at -0.1% vs. -0.5% forecast. Weekly Jobless claims at 650K continue to be weak. The exception to USD strength was the Swiss Franc which fell heavily after the SNB cut rates and stated their intention to start Quantitative Easing. Looking ahead for International Trade Balance for January forecast to fall to -38Bln vs. -39.8Bln previously.
Technical Outlook:
USDINR chart pattern shows a narrow trade for the day .Currency has a good support at 51.50 levels but if the support level is broken and is able to sustain below the level then the second support level would be at 51.35 .Upper range remains at 51.78 and break above it would add bullish momentum to the currency and would take it to the resistance level of 51.95 levels.
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