The Indian rupee backed away from a more than five-month peak as the dollar recovered some of its steep losses versus major currencies. U.S. Dollar a triple barrage of higher risk appetite, commodity prices and higher stocks sent the dollar to fresh year lows. ISM manufacturing improved to 42.8 vs. 42.5 forecast at the economy continues to rebound. Oil continued to rally on the back of the broad USD weakness. Crude Oil finished up $2.27 to finish the day at $68.50 a barrel. Looking ahead for April Pending Home Sales are forecast at 0.5% vs. 3.2% previously.
Technical Outlook:
USDINR is expected to give a upward correction for the day. With the trading range between 46.90-47.30 levels for the day. Good support is seen at 46.80 levels and key resistance is seen at 47.42 levels. Stochastic has turned from the oversold levels and is seen trending up. Currency is trading below the moving average and is expected to test the average level of 47.30 for the day.
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