Dollar-Technical Overview For The Month Of July-2014

                                                                  Dollar – Vs –Rupee

Dollar   closed at Rs. 59.72 on 4-7-14

Range for the week ended on 4-7-14 was:-Rs.60.26—59.52

SUPPORT :- 59.52 / 59.36 / 58.97 / 58.82 / 58.25

RESISTANCE:- 60.26 / 60.38 / 60.53 / 61.19 / 61.55 / 61.81 / 62.44.

TECHNICAL   OBSERVATION :-

The dollar is still   below   its major moving averages on the daily  chart which are in the range of 60.16—61.37 and on the weekly chart strong average support range is 57.12—56.10.It is also making lower top and bottom on the line and bar chart ,furthermore negative  divergence re-surfaced on the chart indicating that it may break the level of 59.28 in days to come, since it is below its major moving averages  therefore the divergence  may come into play, the chart pattern suggest that it can. The strong support for  the week starting from-7-7-14 to 11-7-14 exist at 59.52 and for the month of July-14  at 58.97,avoid long trade  if it closes below 59.52  and below 58.97 do not think of long trade because then the next potential support area would be in the range of 58.25 / 57.12 & 56.10. The chart is showing weakness therefore until and unless it crosses 60.26 and then 60.53 mark nothing significant can happen on the up side. The range for the month of July-14 is  60.53  --58.97 and break on either side of the range will decide the trend. It is expected to move in the range with a downward bias in the month of July-14.

REMARKS:-The short and medium term trend is down , the technical parameters suggest weakness , therefore avoid long trade .I expect the dollar to weaken further from here.

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