USDINR still looks bullish at 78.06 (spot) on 12-06-2022. Dollar continues to move in uptrend from a long time now. There are lot of reasons which add on to the uptrend. With inflation, war and probable recession around the corner the world’s safest currency holding its strong position. So, we look into the fundamental and technical side for reasons supporting continuation of bullish trend.
Fundamental-
With US PPI index, retail sales data coming up and most importantly Fed’s interest decision on 15th June USD is expected to move upward. This is because Fed is again expected to raise interest rate by 50 basis points. Though for INR there are some news and data coming up within the same time period its expected to impact less with fear of recession and ongoing war pulling traders more towards Dollar. For INR CPI, WPI and forex reserve data to be announced soon. But the weightage on the data from US suppose to put more impact than INR due to other geo political reasons.
Technical-
At present USDINR standing at 78.06. If we see the price action and indicators all are in favor of USD for at least another 50/60 points. Things in favor of USD-
• It has started to move upward after making flag and pole pattern.
• It’s not making continuous green candles but moving up. Which a sign that the trend may continue.
• If we connect highs from last year there is trend line formation which is above current price.
• RSI in day candles and weekly candles are above 60.
Fundamental-
With US PPI index, retail sales data coming up and most importantly Fed’s interest decision on 15th June USD is expected to move upward. This is because Fed is again expected to raise interest rate by 50 basis points. Though for INR there are some news and data coming up within the same time period its expected to impact less with fear of recession and ongoing war pulling traders more towards Dollar. For INR CPI, WPI and forex reserve data to be announced soon. But the weightage on the data from US suppose to put more impact than INR due to other geo political reasons.
Technical-
At present USDINR standing at 78.06. If we see the price action and indicators all are in favor of USD for at least another 50/60 points. Things in favor of USD-
• It has started to move upward after making flag and pole pattern.
• It’s not making continuous green candles but moving up. Which a sign that the trend may continue.
• If we connect highs from last year there is trend line formation which is above current price.
• RSI in day candles and weekly candles are above 60.
Trade closed: target reached