Rupee strengthened to its highest in seven months as the U.S. unit continued its southward journey against major currencies. Gains in the stock market also boosted sentiment. U.S. Dollar felt more pressure as investors continued to pressure the Dollar on the back of more rumblings from Asian disquiet with US debt. Pending Home sales kept the mood in the market positive with April up 6.7% vs. 0.5% forecast. US stocks manages a third day of gains. Crude Oil finished down $0.03 to finish the day at $68.47 a barrel. Looking ahead for ISM Non Manufacturing is forecast at 46.5 vs. 45.2 previously. April Factory Orders are forecast at 0.9% vs. -0.9%.
Technical Outlook:
USDINR is expected to give a downward correction for the day. With the trading range between 46.55-47.15 levels for the day. Good support is seen at 46.40 levels and key resistance is seen at 47.22 levels. Stochastic is trending down and the currency is also seen trading below the moving averages giving bearish outlook but market at oversold area giving a caution signal.
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