USDINR : USDINR last week closed positive with very substantial gains of 0.43%, and agressive volatility of 79 paisa. Set up in the pair, remained bullish to neutral with RSI at 75 (on weekly timeframe), the pair closed with massive gains in the last two week after with only a substantial correction seen on Friday. Volatile moves in pairs came on the backdrop of massive move in dollar, despite softened oil, but negative inflow by FII/FPI resumed. The FX reserve data posted yet again a massive decline of $8.13B compared to last week at $537.52B. Going ahead, the trend remains bullish with neutral bias as per set up. The Global currency Market remained extremely volatile. Last week Rupee remained the second best performer among asian and EM Currency basket only after Yuan. As per weekly option data, highest combined OI 3.8 lacs in PE & CE at 81.50 as max pain point with a combined premium of 60 paisa, indicates 80.97-82.27 kind of range/closing for the week. Technically, the pair remained above the upper range of 81.33 and rose approx 90 paisa, the gains could extend upto 82.35, if 81.95 revisited again, only a dip below 81.37 could trigger the correction. Any correction towards 80.81-73 could likely be bought out unless the pair breached 80.67 on downside. As long as USDINR supports 81.17, the trend may not change in the short term. Going ahead, 81.31 will remain trend changing, stay on the buy side above this level and remain on the sell side below this level, an ideal strategy for the week. Last week we were expecting higher volatility in Rupee, and it remains so. Going ahead, We expect moderate volatility to continue in the Rupee. *Weekly Technical Update*