Globally, equity markets remained poised as US politicians continue to reduce their difference over the fiscal package. Dow Jones closed slightly in red 0.1% lower. Markets are likely to shift focus from fiscal package to US election outcome given we are just a week away from polling day. The price action in EUR/USD pair remained bullish as pair rebound to 1.1840 levels after testing a low 1.1785 on Friday. The gains in EUR/USD were further supported by the release of improved manufacturing PMI data from Germany and Euro area 58 & 54.4 respectively. Technically, EUR/USD pair has support near 1.18-1.1820 on a closing basis and resistance near 1.1860-1.1880 levels.
On domestic front, Nifty is trading flat near 11900 levels and 10-year bond yield is trading at 5.84%. Last week, despite broader dollar weakness USDINR pair gained amid continued buying by RBI, which led FX reserves surge to $555 bn mark. Technically, USDINR pair has witnessed triangle pattern break-out at 73.50 levels on 4-hour time frame. USDINR pair is likely to trade with bullish bias with support near 73.50-55 level and resistance near 73.90 levels if broken can test 74.10 levels.
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