Thursday, December 2, 2010

The Advisor Weblog

The Advisor Weblog

Indian Rupee and Hong Kong Dollar

Posted: 02 Dec 2010 01:37 PM PST

Dollar was sharply lower today as stocks and commodities soar during past American session, with Wall Street indexes closing just below year highs posted past October. Over the last two days, risk sentiment has dramatically changed, sending investors against greenback. Ahead of US Payrolls, and despite data points to overcome expectations, much better than expected reading could just exacerbate current market sentiment and push dollar even lower particularly against its European rivals and commodity currencies.

On other view, Euro fall these past weeks has left most of its crosses near extreme oversold readings, supporting current bullish correction, that is still far from a trend change; EUR/INR has managed to bounce higher from 59.00 low posted yesterday, quoting at the time of writing around 50.55, and with a slightly bullish tone according to 4 hours chart: despite current candle opened above 20 SMA, indicators remain below their midlines, not yet giving bullish signs; pair needs to accelerate above 59.80 static resistance area, to extend gains towards 60.20 first, and 60.80 area, where the cross will complete a pullback to the daily ascendant trend line broke past week; supports for current session, are located at 59.30, 59.00 and the 58.30 price zone.

USD/HKD turned strongly bearish after posting a 7.7710 high, closing the day around strong 7.7659 price zone. 4 hours chart shows momentum bouncing back higher after the pair found support at the strong 7.7640 price zone, although the cross trades below its 20 SMA around 7.7670; above this last, 7.7660, 7.7690 and 7.7730 are the levels to watch, while lose of mentioned 0.7640 price zone should trigger further falls for the upcoming sessions, towards 7.7600 and 7.7565.
Posted by at 5:24 PM

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