Mtechtips MCX-SX USDINR INTRADAY trading analysis 14-09-2016
MTECHTIPS Dollar/rupee and dollar index traded higher during early morning trades Wednesday as investors turned risk-averse ahead of the Federal Reserve Bank Sep 20-21 monetary policy meeting to gauge whether the central bank intends to raise the key interest rates in coming months. Dollar rose, paring initial losses against its major rivals as investors shifted their focus away from riskier assets as concerns grew about the fading impact of the world’s major central banks to stimulate growth.However the greenback had weakened post Federal Reserve officials remarked that Federal Reserve is unlikely to raise interest rates this month.Also, Federal Reserve Bank of Atlanta President Dennis Lockhart said Monday that the US central bank is getting closer to raising rates, but he declined to comment on when he would like to see the Fed move to increase borrowing costs. USDINR gained more than 0.20% and settled at 67.0525 levels. USDINR remained below 61.8% Fibonacci Retracement of its previous fall which is creating probability for correction towards 66.95-66.75 again.Further, 67.25 will act as a massive resistance which is indicating for 61.8% Fibonacci Retracement and pair would need to trade above it in order to test 67.45-67.65.