USDINR Analysis

• 10 January, 2024 Rajesh Tatineni

USDINR Analysis

Afternoon Session: USDINR marked selling pressure, will it drop beyond the imp level 83?

Highlights:

• USDINR future witnessed a gap-down opening at 83.13.
• A long green candle formed by the USDINR price closed below the short-term moving average.
• On the daily chart, the momentum indicator RSI trailing between 41-48 levels shows indication while MACD has made a negative crossover below the zero-line.

Overview:

The domestic currency pair USDINR traded in a tight range at a lower level on Tuesday and ended on a flat note ahead of inflation data. Technically the pair closed with a positive kind of candlestick pattern on the daily chart suggesting consolidation mode and a breakdown of 83.10 would invite selling pressure. Technically, the 14-day Relative Strength Index (RSI) indicates that consolidation zone. On the higher side, the resistance will be at 83.25,83.34 levels and a breakout of 83.44,83.56 can move towards 83.61,83.71 and 83.92 levels. However, the support for the currency pair will be seen at 83.10,83.05 and 83.00 levels. A breakdown of 82.87 can test at 82.65,82.43 and 82.27 levels. Keep an eye on domestic CPI & IIP and US CPI data, which will weigh on currency markets.

Outlook:

While India’s current account deficit is at a comfortable figure as of now, the deficit is highly dependent on global remittances and IT services. USDINR traded listlessly, within a tight range yesterday, and 10-year bond yields remained quiet, waiting for the US CPI release tomorrow.

Support and Resistance Levels: