Usdinr Remains Flat

 Usdinr Remains Flat

Usd/Inr Remains Flat Ahead Of Indian Wpi

USD/INR remains flat ahead of the release of Indian WPI on Tuesday. The INR is facing pressure due to the increased withdrawal of foreign reserves. On top of that, the domestic stock markets are sluggish which is also putting pressure on the INR.

However, that's not to say that all things are against the INR. For starters, crude oil prices have moved lower, which is very helpful for the INR. Also, the RBI continues to intervene in the market to support the INR.

Rbi Intervention To Help Inr

So, in the short term, the volatility in the USD/INR will remain muted unless it becomes too expensive for RBI to intervene.

Later today, the WPI inflation for India will be released for the month of October. Also, the PPI (US) and Fed speakers are scheduled, which will also be essential for USD/INR.

For the most part, USD/INR is mostly flat but is trading above the 100 EMA on the daily chart. This is a sign that the long-term trend is still positive and will likely remain so. However, the RSI has crossed 70, which shows that USD/INR is in the overbought situation.

On the way up, the first resistance for the USD/INR is around 84.50, and the next one is at 84.70. A strong momentum above this level will unlock the next target of 85.00.

On the downside, the 84.32 level is now acting as support, followed by the 84.00, which is a round figure. This is a sign that the USD/INR is now at the lower side of its trend channel.

Based on that, 83.86 is the next important level of contention for the USD/INR. A break below this contention level will be the sign that downtrend has started in USD/INR.

Any more downside in the crude oil prices will support the INR as the India will have to spend less Dollars on buying the oil.

Trending Stories