FxWirePro: USD/INR trades weaker after RBI rate cut, good to sell on rallies

• USD/INR has made a high of 66.45 today morning and retreated from that level after RBI cuts repo rate by 50 bpbs in RBI policy meeting today.
  
  
• RBI cut repo rate by 50bpbs to 6.75% and kept the Cash reserve ratio (CRR) unchanged at 4%.
  
  
• Global turmoil and Chinese currency devaluation has impacted Indian currency and Stock markets
  
  
•  Indian inflation is under control the wholesale price index (WPI) remained in the negative territory for 10 months in a row and stood at (-)4.95 per cent, while the retail inflation based on Consumer Price Index eased to a record low of 3.66 per cent in August 
  
  
• Indian rupee is expected to bounce back faster compared to EM currencies on the back of stronger fundamentals and real interest rate of rupee. 
  
  
• Technically USD/INR has made a high of 67.03(25 Aug -2015) and declined till 65.56 ( 22^nd Sep 2015) from that level. The pair's major resistance around 69.22 (Aug 26^th high) and any break above targets 73.40/76 in short term.
  
  
• The minor resistance 66.75
  
  
• On the downside minor support is around 66 and any break below will drag the pair further down till 65.40/65/64.46 in short term.

It is good to sell on rallies around 66.10-15 with SL around 66.75 for the TP of 65.45/64.80