USD/INR drops to test key support near 71.50, US data in focus


  • Rupee tracks the yuan rise on fresh trade deal optimism.   
  • Broad USD strength to keep the losses limited ahead of US Services PMIs?

The USD/INR cross came under fresh selling pressure in the European session and hit fresh session lows of 71.57, having faced rejection near 71.80 region for the fourth straight session on Wednesday.

The rupee picked up fresh bids and bounced nearly 20-pips, as it tracked the sudden rally in the Chinese yuan. This last one was fuelled by a Bloomberg report saying that US and China are moving closer to agreeing on the number of tariffs that would be rolled back in phase-one trade deal despite tensions over Hong Kong and Xinjiang. The renewed US-China trade optimism offered fresh signs of life to the Asian currencies.

The latest leg in the spot appears limited, as broad-based US dollar strength could help cushion the downside. Further, expectations of a sixth rate cut this year by the Reserve Bank of India (RBI), in an effort to boost growth, are likely to keep the rupee gains in check. The two-day Reserve Bank of India (RBI) monetary policy review meeting has commenced earlier today, with the decision due on Thursday at 0615 GMT.  

In the meantime, the trade-related news and US economic releases will offer fresh trading cues.

USD/INR Technical levels to consider

USD/INR

Overview
Today last price 71.60
Today Daily Change -0.2065
Today Daily Change % -0.29
Today daily open 71.786
 
Trends
Daily SMA20 71.6394
Daily SMA50 71.2426
Daily SMA100 71.0251
Daily SMA200 70.2405
 
Levels
Previous Daily High 71.826
Previous Daily Low 71.5275
Previous Weekly High 71.8815
Previous Weekly Low 71.2255
Previous Monthly High 72.37
Previous Monthly Low 70.4975
Daily Fibonacci 38.2% 71.712
Daily Fibonacci 61.8% 71.6415
Daily Pivot Point S1 71.6003
Daily Pivot Point S2 71.4147
Daily Pivot Point S3 71.3018
Daily Pivot Point R1 71.8988
Daily Pivot Point R2 72.0117
Daily Pivot Point R3 72.1973

 

 

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