FxWirePro: Indian rupee strengthens against U.S. dollar after WPI inflation data, faces strong support at 71.13 mark

• USD/INR is currently trading around 71.60 marks.
   
• It made intraday high at 71.82 and low at 71.52 marks.
   
• Intraday bias remains neutral till the time pair holds key support at 71.50 mark.
   
• Key resistances are seen at 72.10, 72.66, 72.85, 73.02, 73.24 and 73.66 marks respectively.

• On the other side, initial supports are seen at 71.47, 71.33, 71.13, 70.63, 70.47, 70.22 and 69.94 marks respectively.
   
• Important to note here that 20D, 30D and 55D EMA heads up and confirms the bullish trend in a daily chart.  Current downside movement is short term trend correction only.
   
• India’s NSE Nifty was trading around 0.82 percent higher at 11,462.28 points while BSE Sensex was trading 0.63 points higher at 37,956.82 points.
   
• India Aug 2018 WPI inflation yy decrease to 4.53 % (forecast 4.65 %) vs previous 5.09 %.
   
• India Aug 2018 WPI food index decrease to -2.25 % vs previous -0.86 %.
   
• India Aug 2018 WPI fuel yy decrease to 17.73 % vs previous 18.1 %.
   
• India Aug 2018 WPI manufacturing inflation increase to 4.43 % vs previous 4.26 %.
   
• India Aug 2018 WPI food articles yy decrease to -4.04 % vs previous -2.16 %.

We prefer to take short position on USD/INR only below 71.50, stop loss at 71.80 and target of 71.13.