Axel Rudolph, senior analyst at Commerzbank, suggests that the USD/INR 1 Month NDF’s seems to be stabilizing as its recent slip to its current January low at 69.44 has been accompanied by positive divergence on the daily RSI.
Key Quotes
“A rise back towards the mid-August high at 71.16 and the four month downtrend line at 71.98 is thus underway. While the next higher December peak at 73.01 isn’t overcome, however, we will retain our medium-term neutral outlook. Below it minor resistance can be spotted at the 71.85/72.03 September lows.”
“Were the recent January trough at 69.44 to unexpectedly give way, however, we would have to allow for the July and August lows at 68.51/50 to be reached. This area should offer strong support, if retested that is.”
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