USD/INR Analysis
USD/INR Struggles Near 83.25 zone since last many weeks, however dollar index fell from 106 to 101 odd levels.
- The USD/INR fell a bit during the last week and immediately took support around the 83 zone in spot and bounced back strongly.
- We continue to see a lot of support near the 83 zone in USD/INR.
- The 200 Day EMA and DMA are in the same place around 82.60-82.70 zone.
- The USD/INR staying above the 200 Day EMA could open up the possibility of a move to the 83.50 and 84 levels in coming days, but keep in mind that the Reserve Bank of India is very aggressive in selling dollars and when it comes to stabilizing the currency pair RBI is always ahead of others, so at this point it looks very likely that we continue to stay in the range from 83 to 83.50 zone in Rupee.
The USD/INR was largely flat on Tuesday and slightly up on Wednesday. However, over the past week, it has appreciated as the dollar weakened.
The Dollar-Rupee pair (USD/INR) has been consolidating within the range of 83.00 to 83.50 for several months and it looks like it will continue doing so as per the chart shown above. Despite the significant volatility in the dollar index, USD/INR has not moved substantially, partly due to interventions by the Reserve Bank of India (RBI). Given the current levels, trading USDINR in a specific direction is challenging as 83.50 is the resistance and 83 is the support zone as mentioned in the chart.