Indian rupee on gaining streak - FX derivatives trade ideas
The breakdown in USD/INR continues with a renewed trending bias.
The break of the 67/66.55 support zone (Jan breakout/July TL) highlights the importance of the 65.85 Dec low with violations confirming a deeper corrective phase.
USD/INR: The pair has edged up higher at 66.86 in early Asian session but failed to sustain at higher levels and ended with a bearish candle with current levels of 66.575. Slide below 66.6 has indicated that pullback is over and prices are likely to resume their primary downtrend.
Option Trade Tips:
USD/INR vol-adjusted carry has jumped back to pre-tapering levels.
Earn carry through 2M USD put spreads.
enter USD/INR put spreads that offer pre-taper tantrum levels of vol-adjusted carry.
EUR/INR: EUR edging lower to levels of 74.578 which is below 7 & 21DMA that indicating breach of downwards sloping support line and 21DMA. Daily RSI after testing resistance levels of 50 has slipped to 48 levels. Prices are likely to breach the support line and retest recent bottom of 73.72. So it is better go short in mid month futures.
GBP/INR: This pair violated the short-term uptrend line and ended well below the same. Visible downside gap is showing the strength of the bears in the pair. Thus, it is most likely that prices will break the recent bottom of 94.087 and test the lower levels of 94. So we like to maintain the same strategy using futures contracts as we did it in EURINR case, it is better go short in mid month futures ahead of Brexit scenario (UK referendum scheduled in June).
The break of the 67/66.55 support zone (Jan breakout/July TL) highlights the importance of the 65.85 Dec low with violations confirming a deeper corrective phase.
USD/INR: The pair has edged up higher at 66.86 in early Asian session but failed to sustain at higher levels and ended with a bearish candle with current levels of 66.575. Slide below 66.6 has indicated that pullback is over and prices are likely to resume their primary downtrend.
Option Trade Tips:
USD/INR vol-adjusted carry has jumped back to pre-tapering levels.
Earn carry through 2M USD put spreads.
enter USD/INR put spreads that offer pre-taper tantrum levels of vol-adjusted carry.
EUR/INR: EUR edging lower to levels of 74.578 which is below 7 & 21DMA that indicating breach of downwards sloping support line and 21DMA. Daily RSI after testing resistance levels of 50 has slipped to 48 levels. Prices are likely to breach the support line and retest recent bottom of 73.72. So it is better go short in mid month futures.
GBP/INR: This pair violated the short-term uptrend line and ended well below the same. Visible downside gap is showing the strength of the bears in the pair. Thus, it is most likely that prices will break the recent bottom of 94.087 and test the lower levels of 94. So we like to maintain the same strategy using futures contracts as we did it in EURINR case, it is better go short in mid month futures ahead of Brexit scenario (UK referendum scheduled in June).
