USDINR Analysis
Afternoon Session: USDINR marked selling pressure, will it drop more ahead of NFP data?
Highlights:
- Bearish signal observed with a daily candlestick pattern on USD/INR.
- Technical indicators, including 100-day EMA and RSI, suggest a bullish undertone.
- Resistance at 83.44/83.51 and support at 83.28/83.22 levels, with potential impact from upcoming economic data.
Overview:
The domestic currency pair USD/INR marked selling pressure on Thursday and closed with bearish kind candlestick pattern on daily chart suggesting consolidation mode and breakdown of 83.28 would invite selling pressure. Technically, the USD/INR maintains the bullish vibe as the pair holds above the key 100-day Exponential Moving Average (EMA) on the daily chart and It’s worth noting that the 14-day Relative Strength Index (RSI) is indicating that consolidation zone. On the higher side the resistance will be at 83.44,83.51 levels and breakout of 83.56 can move towards 83.61,83.71,83.92 levels. However, the support for the currency pair will be seen at 83.28,83.22,83.10,83.05 and 83.00 levels. Breakdown of 82.87 can test at 82.65,82.43 and 82.27 levels. Keep an eye on NFP data Which will weigh on currency markets.
Outlook:
Risk appetite remains shaky, but not yet to result in a strong bout of aversion. While the Indian Rupee remains firm in its range, the short-term strength of the Dollar has balanced out any appreciation potential for the Rupee further. Today’s jobs data is very important for markets and for the Rupee, as solid data could trigger a repricing of Fed expectations.
Conclusion:
The Indian Rupee's resilience in the face of global economic shifts and the delicate dance between foreign investments and RBI interventions underscore the intricacies of its current trajectory. Traders must trade carefully, considering the nuanced interplay of economic data, central bank actions, and global sentiments to anticipate the twists and turns in the USD/INR pair's dynamic journey.
Support and Resistance Levels:
