Currency Strategy and Outlook

USDINR: (50.55) The pair closed with a bearish candlestick pattern. Its decline is expected to continue until it hits the next support level pegged at 50.3 levels. RSI (14) is hovering in the neutral region and has entered the over sold. The USD/INR (January) open interest was down by 2.81%. The February contract witnessed an increase in open interest by 11.81%.
USDINR Futures (December): Positive sentiments for the INR and improved risk appetite are dominating the markets at this time. The USDINR closed just below the crucial support of Rs 50.610 on Wednesday and this could result negative for the unit in trade today. The unit price could now drift lower to test the next support at Rs 50.11 and a close below this could be very negative. On an intraday basis, the resistance for a possible trend reversal on the upside would be Rs 51.06.

USDINR: Currency Tips for Today

In the currency markets, the USD was trading lower versus the JPY and EUR and the dollar index was sharply lower around 81.125. This would result in a weak open for the USDINR in Indian markets today.
The USDINR is expected to find strong support near Rs 51.351. If this support is broken the unit price could slide to Rs 51.036 which is the next support. On the upside, the resistance will be seen at Rs 52.06 above this the trend could become positive for the next few days.
Strategy: Sell on rallies.