USDINR Analysis
Afternoon Session: As we anticipated USDINR reached the critical support of 82.87, will it hold or break?
Highlights:
- The USD/INR pair has remained confined in a trading range of 82.80–83.40 since September.
- 14-day Relative Strength Index (RSI) is below the 50.0 midpoint, supporting that further decline cannot be ruled out.
- Keep an eye on domestic CPI & IIP, which will weigh on currency markets.
Overview:
The domestic currency pair USDINR witnessed selling pressure on Thursday and closed with a bearish kind of candlestick pattern on the daily chart suggesting negative bias The USD/INR pair has remained confined in a trading range of 82.80–83.40 since September and broken out of levels would dictate the near-term trend. Technically, the 14-day Relative Strength Index (RSI) is below the 50.0 midpoint, supporting that further decline cannot be ruled out. On the higher side, the resistance will be at 83.13,83.21,83.25 and 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 83.00 and 82.94 levels. A breakdown of 82.87 can test at 82.65,82.43,82.27 levels. Keep an eye on domestic CPI & IIP, which will weigh on currency markets.
Outlook:
The sticky US CPI numbers throw a challenge to the Fed even as they plan to cut rates very soon. Markets still think that this inflation print has not done enough to move the rate cut probabilities. The Rupee is now expected to continue to be stable, as the surprising market reaction to the hawkish CPI data keeps the Dollar strength at bay. Today, India’s CPI data outcome will be an important event on the domestic front.
Support and Resistance Levels:
