USD/INR Technical Analysis: Oil rally to weigh over Rupee, hurdle at 72.12 could be tested
|- The Rupee is likely to weaken, tracking the rally in oil prices.
- USD/INR will likely test resistance at 72.12.
The USD/INR pair looks set to test key resistance above 72.00 with oil rallying to multi-month highs on US-Iran tensions.
Brent oil is currently trading at $70.42, its highest level since May 2019. The black gold is currently representing a 16.7 percent gain on the low of $60.32 registered in early December.
India imports more than 80% of its oil requirements and the rise in crude prices increases India's annual oil import bill.
Hence, markets are likely to offer Rupee, pushing USD/INR to 72.12 - resistance of the weekly chart contracting triangle.
A weekly close above 72.12 would imply a resumption of the rally from July lows near 68.30 and open the doors for beak above 73.00
Weekly chart
Trend: Bullish
Technical levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.