USD/INR Analysis and Path Ahead
Morning Update: Will the USD/INR pair continue to tumble or rebound from its current trading level of 83.10 ?
For the past several weeks, the USD/INR pair has been trading in the 82.10 zone, but the DXY has recovered from the significant support zone of 100.80 and is currently trading close to the 102.50 levels.
- The USD/INR had a sideways move this week; resistance is located around 83.50, and support is located around 83.00.
- We continue to see solid support at the 83 zone and strong resistance at 83.50 in the USD/INR pair.
- Strong support is found around the 82.70 zone, which is also the location of the 200 Day EMA and DMA.
Right now, it seems most probable that the Rupee will remain between 83 and 83.50. But keep in mind that when it comes to stabilizing the currency pair, the Reserve Bank of India is always ahead of the competition and sells dollars extremely aggressively. If the USD/INR continues to rise over the 200 Day EMA, a move towards the 83.50 levels would be possible. In contrast to DXY, which is presently trading around the 102.50 zone after rising from the key support zone of 100.50-100.80, USD/INR has been circling the 82.25 zone for the past few weeks.
Now let's understand the USD/INR January monthly option chain :
In the option chain shown in the above table, we can see call writing at 83.50 strikes and put writing at 83.00 strikes. According to the option chain, it suggests that the USD/INR could move between 83.00 and 83.50 in January.
The Dollar-Rupee pair (USD/INR) has been consolidating for a number of months within the range of 83.00 to 83.50, as seen by the chart and option chain above. This consolidation looks like it will go on. Despite the extreme volatility of the dollar index, the Reserve Bank of India's (RBI) measures have caused the USD/INR exchange rate to remain relatively stable. It is currently difficult to trade the USD/INR in a certain direction since, as the chart shows, the resistance level is 83.50 and the support zone is 83.00.
Examine the USD/INR daily chart's support and resistance levels. The spot chart shows all levels:
|
USD/INR |
Support |
Resistance |
|
Level 1 |
83.00 |
83.40 |
|
Level 2 |
82.70 |
83.50 |