Mtechtips MCX-SX USDINR INTRADAY trading analysis 28-01-2016

Mtechtips MCX-SX USDINR INTRADAY trading analysis 28-01-2016

Mtechtips USDINR consolidated above the 68.30 levels and settled at 68.4075, with intraday gain of 0.37%.  A long bullish candle stick formation on EOD chart is yet indicating for bullishness in the pair. Near-term resistance is seen at 161.8% Fibonacci retracement, with a break above that on a daily closing basis paving the way for a test 68.52-68.80. Alternatively, a failure to break above this level could bring correction for the downside level of 68.00-67.80 again.The US Federal Reserve on Wednesday kept its short-term benchmark interest rates unchanged acknowledging that the world's largest economy lost momentum by the end of 2015 tracking an economic slowdown across the globe.The central bank at its December meet had raised their key overnight lending rate by 0.25bps to a range of 0.25-0.50% after nearly a decade, while also maintaining that even though the path of rate hikes may be gradual, the central bank expects to raise interest rates four times in 2016.The Fed's more cautious outlook reduced the likelihood it would raise rates by 25 basis points four times this year, which hurt the greenback but its latest assessment on the economy did not completely wipe out the changes of a possible rate increase in March, which disappointed some stock investors.Dollar index, which tracks the strength of the greenback against a basket of six major currencies, traded 99 during Asian trade compared with 99.47 before the FOMC meeting outcome on Wednesday.

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