News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Real Time News
  • The Japanese Yen could rise against the US Dollar and Australian Dollar as retail investors increase upside exposure in USD/JPY and AUD/JPY. What are key technical levels to watch? Get your market update from @ddubrovskyFX here:https://t.co/tZDMOGf8JI https://t.co/ECryTOl1ui
  • 🇧🇷 Interest Rate Decision Actual: 5.25% Expected: 5.25% Previous: 4.25% https://www.dailyfx.com/economic-calendar#2021-08-04
  • Heads Up:🇧🇷 Interest Rate Decision due at 22:00 GMT (15min) Actual: 5.25% Expected: 5.25% Previous: 4.25% https://www.dailyfx.com/economic-calendar#2021-08-04
  • The US Dollar put in a strong spike this morning on the back of some comments from FOMC Vice Chair, Richard Clarida. Get your market update from @JStanleyFX here:https://t.co/eegD686FEi https://t.co/FQsHwu6RjN
  • Forex Update: As of 20:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.39% 🇨🇦CAD: -0.04% 🇬🇧GBP: -0.19% 🇪🇺EUR: -0.23% 🇨🇭CHF: -0.27% 🇯🇵JPY: -0.40% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/y9WBLkpRXG
  • Heads Up:🇧🇷 Interest Rate Decision due at 21:00 GMT (15min) Expected: 5.25% Previous: 4.25% https://www.dailyfx.com/economic-calendar#2021-08-04
  • August is typically a risk-off month for FX markets, with the Japanese Yen and Swiss Franc the top performers. The Australian and New Zealand Dollars have declined the most. Get your market update from @CVecchioFX here:https://t.co/DeCKSRrDpz https://t.co/TMnfL74loo
  • Commodities Update: As of 20:00, these are your best and worst performers based on the London trading schedule: Gold: 0.07% Oil - US Crude: -0.25% Silver: -0.57% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/GePM1FoD1w
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 94.42%, while traders in France 40 are at opposite extremes with 78.72%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/oVnfHgqKie
  • Key levels worth watching for gold price action $XAUUSD $GLD $GC_F https://t.co/J3jKDK23PW
Indian Rupee, Nifty 50 Forecast: USD/INR Sinks on US Election, Index Eyes Record High?

Indian Rupee, Nifty 50 Forecast: USD/INR Sinks on US Election, Index Eyes Record High?

Daniel Dubrovsky, Strategist

Indian Rupee, USD/INR, Nifty 50, US Election, Technical Analysis - Talking Points

  • Biden-win bets in US election propelling Indian Rupee, Nifty 50
  • USD/INR established key falling trendline, eyes September lows?
  • India’s benchmark stocks index eyeing all-time highs & beyond?
Advertisement

Following some initial weakness, the Indian Rupee seems to be back on the offensive against the US Dollar. The Nifty 50, India’s benchmark stock index, is also gaining ground. This followed rising expectations of Joe Biden winning the US presidential election against incumbent Donald Trump.

In fact, emerging market assets have been benefiting from this scenario as it could mean less global trade friction in the coming 4 years. The MSCI Emerging Markets Index (EEM) recently soared to its highest since the first half of 2018. What is the technical road for USD/INR and the Nifty 50 from here?

Indian Rupee Technical Analysis

USD/INR turned lower after establishing what appears to be a new falling trendline from April. The pair may further break under short-term rising support from September as it re-enters a zone of consolidation between 74.04 and 72.76. Keep a close eye on the 50-day Simple Moving Average (SMA). Taking it out would open the door to testing the lower bound of the consolidative zone. Further losses from there exposes the 72.14 – 72.40 former resistance range. Otherwise, a climb above 74.91 exposes Summer 2020 highs.

USD/INR Daily Chart

Indian Rupee, Nifty 50 Forecast: USD/INR Sinks on US Election, Index Eyes Record High?

USD/INR Chart Created in TradingView

Nifty 50 Technical Analysis

The Nifty 50 is fast approaching all-time highs set earlier this year, eyeing the 12246 – 12430 resistance zone. There is the presence of negative RSI divergence which shows fading upside momentum. That can at times precede a turn lower. In such an outcome, keep a close eye on the 50-day SMA which may reinstate the focus to the upside. Key support seems to sit between 11535 and 11661 towards September lows. Otherwise, taking out resistance exposes the midpoint and 61.8% Fibonacci extension at 12931 and 13437 respectively.

Nifty 50 Daily Chart

Indian Rupee, Nifty 50 Forecast: USD/INR Sinks on US Election, Index Eyes Record High?

Nifty 50 Chart Created in TradingView

--- Written by Daniel Dubrovsky, Currency Analyst for DailyFX.com

To contact Daniel, use the comments section below or @ddubrovskyFX on Twitter

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES