WEEKLY RANGE – 69.70 (70.10 – 70.98 ) 71.45
USDINR showing the lack of momentum is the 14-bar relative strength index (RSI) that seesaws near a normal range, indicating gradually declines to 50% Fibonacci retrenchment level of July-September
upside, at 70.55. However, pair’s further declines will be stopped by the channel-support, at 70.44, which if ignored could drag the quote to sub-70.00 area. Alternatively, 71.40 can offer immediate resistance ahead of highlighting 71.70/83 area including 23.6% Fibonacci retrenchment and channel resistance. Should there be additional upside beyond 71.83, buyers could challenge monthly top surrounding 72.65.
Weekly Conclusion :-
IMPORT: - EVERY DIP OF 30-50 PIPS MUST COVER.
EXPORT: - WAIT FOR BOUNCE BACK.
CONCERN
IMF Says Greece Needs More Fiscal Space From European Partners.
In swipe at Trump, China tells U.N. tariffs could plunge world into recession.
Pound Set for Further Trouble After BOE’s Saunders Turns Dovish.
MAJOR
DOLLAR INDEX
DXY (US Dollar Index) is trading a bull trend above its main daily simple moving averages . The market almost hit the 2019 high at 99.38 before retreating slightly. Earlier in the New York session, the Non-defense Capital Goods Orders Excluding Aircraft (August) in the United States, came in below expectations at -0.2 vs. 0% while the Core Personal Consumption Expenditure year on year came in line with expectations at 1.8% in August.
EUR/USD
The common currency, on the daily chart, is trading in a bear trend below its main daily simple moving averages. The Euro ends the week stuck in a two-week trading range as investors are waiting for the next catalysts. There will be a plethora of news announcements next week, including the Gross Domestic Product in the United States. Therefore, there is potential for volatility and the current range may get broken.
GBP/USD
Our central view is that the Brexit start date will be delayed beyond October 31 in line with the legislation that was pushed through parliament earlier this month. On this scenario we expect EUR/GBP to be trading in the 0.90 area on a 3 month view. If a Brexit deal were struck between the UK and the EU, we would expect EUR/GBP to recover to the 0.85 area and for GBP/USD to push towards 1.30. On a no deal.
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