EURO RUPEE SHORT TERM VIEW: 31st MAY 2019

Insignia Consultants

New Delhi

Friday, May 31, 2019

TIME: 9:15 am IST

         

EURO-RUPEE SHORT TERM VIEW

Euro/Inr (Spot/Inter-bank) Current price: 77.6475

Key support: 75.6525

Key resistances: 80.1125

There is no euro positive news at this point of time. Brexit delay and uncertainty equally affect euro/usd in a negative way. The net short positions in euro/usd is rising with passing of each week. European parliamentary elections suggest people are unhappy with current elected leaders of France, UK and Germany. German Chancellor Merkel is not satisfied with her successor when she steps down in 2021. Euro will trade with a falling bias unless there is some positive news. The trade war with USA and Germany is also not over. Italy is proving to be a thorn in the flesh for euro bulls.

Technically speaking: (a) Euro/inr is oversold and rise can come in anytime. (b) Fifty month moving average around 75.6525 is the key long term support. (b) Two hundred day moving average at 80.1125 is the key long term resistance. (c) Euro/inr can trade in wider 75.50-80.25 range. (d) Momentum is still down. ( e) In case euro/inr falls below 75.6525 then 74.9450 and 72.050 are the targets.

I prefer to buy some far dated put options in euro/inr as I expected euro/inr to form a multiyear bottom by the end of third quarter (if not now).

Disclaimer: Any opinions as to the commentary, market information, and future direction of prices of specific currencies, crypto currency, metals and commodities reflect the views of the individual analyst, In no event shall Insignia Consultants or its employees have any liability for any losses incurred in connection with any decision made, action or inaction taken by any party in reliance upon the information provided in this material; or in any delays, inaccuracies, errors in, or omissions of Information. Nothing in this article is, or should be construed as, investment advice. Prepared by Chintan Karnani

NOTES TO THE ABOVE REPORT

PLEASE NOTE: HOLDS MEANS HOLDS ON DAILY CLOSING BASIS

ALL PRICES ARE IN INDIAN RUPEE UNLESS OTHERWISE SPECIFIED

Indian Standard Time (IST): +5:30 GMT

Current Market Price (CMP)

All foreign exchange prices are for inter-bank rates.