WEEKLY FOREX TECHNICAL REPORT 09 DEC TO 13 DEC 2013
The rupee rose on Friday, notching up a third week of gains, while US nonfarm payrolls data and state poll results are expected to determine whether the currency would sustain its recent winning run. The outcome of the state elections is due on Sunday will be a key pointer. A fourth straight month of solid hiring cut the United States’ unemployment rate in Nov to a five-year low of 7%. The surprisingly robust job gain suggested that the economy may have begun to accelerate. It also fueled speculation that the Fed Reserve will scale back its economic stimulus when it meets later this month.
Domestic Forex markets Updates:
- Rupee ends at 61.41 ahead of poll results, US jobs data.
- Rupee offers budget relief as subsidy pressure eases.
- Sterling up on house price data, payrolls awaited.
- Yuan rallies on signs central bank will tolerate record year-end.
USDINR last week gave negative breakout of lower trend line on daily charts and closed below it. If this selling pressure continues then 61.5000 will act as important support surpassing which 61.0000 is seen as crucial support for it. However, any up move may drift it towards the immediate resistance of 63.0000 holding above which strength can be seen.
EURINR last week surpassed the lower trend line and closed below it and so for the coming week 83.5000 may act as major support. However, strength can again be observed if it trades above the trend line around 85.2000. Important resistance ahead is 86.3000. Overall, it is moving in a tight range of 83.5600-86.0000 since several weeks.
Global Forex Updates:
- Yen Declines as Investors Seek Riskier Assets; Euro Rallies.
- Fed December Taper Odds Double in Survey as Jobs Beat Estimate.
- Canada Dollar Touches Three-Year Low on Central Bank View.