USD-INR DEC 2010 FUTURE

Exactly on line of expectation it made the high of 45.34 which is just one notch below the high of our reported target range of 45.20-45.35.For the day we see it heading further high towards the 45.435-45.52 range but at much lower pace & waning momentum. It should decline with much lower momentum towards the support zone of 44.85-44.97.The extent of fall, momentum ,time duration & other characteristics we will estimate as it unfolds. Over all for the day we are looking for the sideways consolidation of yesterday's rise but with the positive bias.  In our view swing trader may short 45.45  with the strict stop  of 45.55   for the target  range of 45.10-45.20 or lower. Scalpers & intraday traders should trade  with the positive bias & strict as well as tight stop till the target range 45.435-45.52 achieved & after the top confirmation with the negative bias with bit lenient stop.

EURO-USD

Yesterday it  moved sideways to consolidate as per our expectation  but violated the support of 1,3200 brisfly to mark the low of 1.3177. We still maintain our view of the target range of 1.3730-1.3810 as after this consolidation it will have more strength to move up. However for the day it may still consolidate in 1.3400-1.3200 range & move up later on.  We are of the view that it will touch the 1.3786 in next 3-4 days& should be traded for long side.Swing trader should go long  at 1.3200  with the stop of 1.3175  for the short term target of 1.3380. Scalpers & intraday traders must  trade with the  positive bias  only.

 EURO-INR DEC 2010 FUTURE

As EURO is consolidating in the 1.34-1.32 range , it is consolidating in the falling channel.  However more it consolidates larger will be the upside move. As shown in the chart it is forming the falling channel, lower level of the channel may be used for buying opportunity. We maintain our view that it will hit the target range of 60.68-60.55  in next 3 to 4 days once the channel is broken on upside. We expect this channel break out with the EUROUSD crossing above the 1.3400 level.Swing traders are advised to hold long  with the stop of 59.70  for the targets range of 60.55-60.68 & above. Scalpers & intraday traders may trade both side with the  positive bias as long as it trades within channel & trade long only once the channel breaks on upside.