Currency Outlook and Updates

USD INR: 51.7- Pair has completed the tiny double top pattern on the daily chart. Projected target according to pattern is around 51.05 levels.
RSI (14) has entered neutral region from the over bought, generating sell signal in the counter.

EUR INR: 69.66- Prices failed to move higher according to bullish pattern and has slide below the neckline support, on daily chart prices are on verge of violating the primary uptrend line.
RSI (14) is inline with chart pattern.

GBP INR: 81.67- Pair after almost achieving price target according to bullish head and shoulders pattern, turned its direction and slide sharply below the neckline support, further weakness is expected in the counter.
RSI (14) is balanced in neutral region.

The euro strengthened for a second day against the dollar and yen after Spain sold its maximum target of debt today and French yields dropped at an auction.
France auctioned 1.57 billion euros of 10-year bonds at an average yield of 3.18%, the Bank of France said. At its last auction on Nov. 3, the average yield was 3.22%. 

Australia`s dollar fell against all its major counterparts after the statistics bureau said the number of permits granted to build or renovate houses and apartments declined 10.7% in October after dropping 14.2% the previous month.

Indian Currency Outlook and Updates for Today

• The US dollar is expected to attract some selling pressure on rallies against the  INR. Utilize the highs in the USD/INR December contract to sell below 52.49 with target of 52.31/ 52.22 and a stop loss of 52.58.

• In the currency futures market, the most traded near-month dollar-rupee contract on the NSE closed at 52.30. The USD/INR December open interest was up by 2.7%. The January contract witnessed a decrease in open interest by 1.8%.
• Indian rupee is expected open slightly higher against the US dollar but again may have range bound session  if Europe sees muted action. For Rupee`s short-term as well as intraday movement depends on domestic news flows and India`s key Q2 GDP data and thereafter it reaction on stock market is crucial for rupee`s trend. Meanwhile at futures front in USD/INR (Dec) contract, technically speaking a decisive close below 52.10 would call for a major move downside to 51.66/74. While on upside, more risk is intact for a record high in the contract, a break above 52.42 takes it to 52.72 and that if breach then even much higher to 53.50. 
• Opening indications are mixed for the USDINR but the mood seems positive for the unit. Asian equities are down this morning as positive sentiments wane after downgrades of some European Banks.

Indian Currency Outlook Updates for Today: Indian Forex Tips

• Rally in USD/INR towards 52.25/25 is a good selling level with stop loss 52.45 for target 51.95.

• Dip in EUR/USD towards 1.3272/84 is a good buying level with stop loss 1.3241 for target 1.3391.

• Dip in GBP/USD towards 1.5456/66 is a good buying level with stop loss 1.5421 for target 1.5555.

• Dip in USD/JPY towards 77.80 is a good buying level with stop loss 77.43 for target 78.28.

Currency Outlook Updates for Today: Indian Forex Tips

• Indian rupee shall reverse its Friday`s losses against the US dollar after improved risk sentiments and gains in risk beta currencies such as Euro and Australian dollar. Asian equities have reacted pretty well in early trade on Italian aid news as Nikkei jumped nearly 1.8% to 8,301, Shanghai stayed flat at 2,381, while Hang Sang just shy away from 18,000 with 1.7% rise to 17,992. Rally in riskier currencies was supportive for gain in Asian currencies as South Korea`s won appreciated nearly 0.8 % to USD 1,154.50. The Spot Indian rupee is expected to open near 52.10 vs. 52.26 of Friday`s close and is tipped to move in the range of 51.90 - 52.25 against the dollar.

• In the currency futures market, the most traded near-month dollar-rupee contract on the NSE closed at 52.29. The USD/INR November open interest was down by 12.4%. The December contract witnessed an increase in open interest by 8.4%.

• The US dollar is expected to attract some selling pressure on rallies against the  INR. Utilize the highs in the USD/INR December contract to sell below 52.49 with target of 52.30/52.21 and a stop loss of 52.58.

• Asian currencies dropped for a fourth week, led by South Korea`s won and India`s rupee, as Europe`s debt crisis showed no signs of abating, prompting investors to favor safer assets including the dollar.