USD/INR outlook-Rupee set to weaken in coming weeks, first target 64.20
28 Aug 2017
Previous month we saw mentha prices surging from 870 ahead of our target of 860 (which we shared in our previous mail) ,to make a high of 1236 in just one month.Month of august saw the prices surging by 41% in single month. We had exited out of our short position at 877 which was built at 920 and build a long position around 880 but exited the same around 920 again.Break of 920-930 region was crucial for the mentha prices to confirm the bottom is over and once It broke 1050 levels the next target was quite clear around 1220 mark as seen on the chart before which the reversal was not expected.
Whats now?
For next couple of weeks the trend looks lower towards 1080 and possible 1050 also which is expected to hold and bounce back expected from there which is also 50% retracement of the move of 870 and 1228.Selling pressure will intensify around 1165-1185 levels for target of 1080/1050.From the medium term perspective while the outlook stays bullish while in the near term a broader range will play out at 1050-1250 levels.
