USD/INR attempts recovery from three-month lows, 71.00 back on sight?

USD/INR defends 70.50 support amid trade/ Brexit optimism.
Rupee drops for the first time in five trading sessions.
Focus on USD dynamics and US-China trade deal announcement.

Dhwani Mehta FXStreet

USD/INR is seeing some fresh signs of life in the European trading this Friday, having fallen to the weakest levels in three-months just ahead of the 70.50 level earlier today.

The spot turned green for the first time in five trading sessions after the Indian rupee came under fresh selling pressure on persistent greenback purchases by state-run banks trimmed early gains due to optimism over a US-China trade deal. According to a deal at an Indian state-run bank, “State-run banks have been actively buying dollars from around 70.55 levels, likely on behalf of the RBI.”

Earlier today, USD/INR extended the previous decline and tested the 70.50 support area, as the Indian currency continued to benefit from the strength seen in its Asian peers vs. the greenback after the US dollar was heavily dumped across the board. The US currency bore the brunt of the UK PM Johnson’s massive victory that shot the GBP/USD pair through the roof.

The recovery in the spot could gain further traction If the US-China trade deal is announced later on Friday that would boost the risk assets, including Treasury yields, in turn offering the much-needed reprieve to the USD bulls. Ahead of a deal announcement, the pair will also take cues from the Indian macro news and US Retail Sales report.

USD/INR Technical levels to consider

USD/INR

Overview
Today last price	70.6905
Today Daily Change	0.1735
Today Daily Change %	0.25
Today daily open	70.517

Trends
Daily SMA20	71.4422
Daily SMA50	71.2508
Daily SMA100	71.1704
Daily SMA200	70.2519

Levels
Previous Daily High	70.9575
Previous Daily Low	70.517
Previous Weekly High	71.98
Previous Weekly Low	71.1775
Previous Monthly High	72.37
Previous Monthly Low	70.4975
Daily Fibonacci 38.2%	70.6853
Daily Fibonacci 61.8%	70.7892
Daily Pivot Point S1	70.3702
Daily Pivot Point S2	70.2233
Daily Pivot Point S3	69.9297
Daily Pivot Point R1	70.8107
Daily Pivot Point R2	71.1043
Daily Pivot Point R3	71.2512

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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