Axel Rudolph, senior analyst at Commerzbank, suggests that the USD/INR 1 Month NDF’s rally from its current January low at 69.44 has taken it to the four month resistance line at 71.63 which so far caps.
“Around it further consolidation is likely to be seen over the next few days. While the next higher December peak at 73.01 isn’t overcome on a daily chart closing basis, we will retain our medium-term neutral outlook.”
“Below the 73.01 level 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.”