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USD/INR Price Analysis: Sticks to modest intraday gains above 83.00 amid stronger USD

  • USD/INR catches fresh bids on Monday and draws support from a bullish USD.
  • Neutral oscillators on the daily chart warrant some caution for bullish traders.
  • Any meaningful slide might continue to attract fresh buyers and remain limited.

The USD/INR pair regains positive traction on the first day of a new week and moves away from a nearly three-week low, around the 82.80-82.75 region touched on Friday. Spot prices stick to intraday gains through the early part of the European session and currently trade above the 83.00 round-figure mark.

The prospects for further policy tightening by the Federal Reserve (Fed) remain supportive of elevated US Treasury bond yields and assist the US Dollar (USD) to hold steady near its highest level in more than six months. Apart from this, persistent worries about a property market crisis in China further benefit the Greenback's relative safe-haven status and act as a tailwind for the USD/INR pair.

From a technical perspective, neutral oscillators on the daily chart warrant some caution before positioning for further intraday appreciating move. Hence, any subsequent strength is likely to confront resistance near the 82.30 zone ahead of the all-time peak, around the 83.40-83.45 region touched on August 15, which if cleared decisively should allow the USD/INR pair to conquer the 84.00 round figure.

On the flip side, the 82.80-82.75 region, or Friday's swing low should protect the immediate downside. This is closely followed by the upward-sloping 100-day Simple Moving Average (SMA), currently pegged near the mid-82.00s, and the 200-day SMA, around the 82.35 region. The latter should act as a key pivotal point for the USD/INR pair and a convincing break below will be seen as a fresh trigger for bears.

Spot prices might then turn vulnerable to accelerate the slide towards the 82.00 mark. The downward trajectory could get extended further and eventually drag the USD/INR pair to the July swing low, around the 81.70-81.65 region.

USD/INR daily chart

Technical levels to watch

USD/INR

Overview
Today last price83.1125
Today Daily Change0.0160
Today Daily Change %0.02
Today daily open83.0965
 
Trends
Daily SMA2082.9933
Daily SMA5082.762
Daily SMA10082.5335
Daily SMA20082.3614
 
Levels
Previous Daily High83.2444
Previous Daily Low82.5125
Previous Weekly High83.8456
Previous Weekly Low82.5125
Previous Monthly High83.5505
Previous Monthly Low82.224
Daily Fibonacci 38.2%82.7921
Daily Fibonacci 61.8%82.9648
Daily Pivot Point S182.6579
Daily Pivot Point S282.2193
Daily Pivot Point S381.926
Daily Pivot Point R183.3897
Daily Pivot Point R283.683
Daily Pivot Point R384.1216

Author

Haresh Menghani

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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