USD/INR Price Analysis: INR rise pauses ahead of RBI

USD/INR eked out moderate gains on Wednesday, aborting immediate bearish view.
Wednesday's low is the level to defend for the bulls.
RBI is expected to keep interest rates unchanged.

Omkar Godbole FXStreet Contributor

USD/INR pair created an inverted bullish hammer-like candle on Wednesday, pausing the downside (uptick in INR) ahead of the Reserve Bank of India's (RBI) rate decision.

The pair dived out of an ascending channel on Feb. 4, signaling an end of the bounce from recent lows near 70.70 and scope for a re-test of that level.

Tuesday's candle has aborted the immediate bearish view and made Wednesday's move pivotal. Acceptance under the hammer's low of 71.10 would signal a continuation of the decline toward 70.70. On the other hand, a break above 71.2890 (hammer's high) would shift risk in favor of a re-test of recent highs near 71.65.

The central bank is widely expected to keep interest rates unchanged at 5.15% as inflation is rising and the government is reportedly struggling to control fiscal deficit.
Notably, the consumer price index shot up to an unexpected five-year high of 7.35% in December.

Daily chart

Trend: Neutral

Technical levels

USD/INR

Overview
Today last price	71.2175
Today Daily Change	-0.0185
Today Daily Change %	-0.03
Today daily open	71.236

Trends
Daily SMA20	71.1644
Daily SMA50	71.2274
Daily SMA100	71.2112
Daily SMA200	70.6208

Levels
Previous Daily High	71.405
Previous Daily Low	71.0903
Previous Weekly High	71.855
Previous Weekly Low	71.1609
Previous Monthly High	72.57
Previous Monthly Low	70.5875
Daily Fibonacci 38.2%	71.2848
Daily Fibonacci 61.8%	71.2105
Daily Pivot Point S1	71.0825
Daily Pivot Point S2	70.9291
Daily Pivot Point S3	70.7678
Daily Pivot Point R1	71.3972
Daily Pivot Point R2	71.5585
Daily Pivot Point R3	71.7119

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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