USD/INR Price News: Indian rupee buyers seek entries above 74.00 on cautious optimism

USD/INR steps back from intraday top after two-day downtrend.
Mildly upbeat sentiment weighs on USD ahead of Powell’s testimony.
US-China jitters, covid updates and second-tier data add filters to the moves.

Anil Panchal FXStreet

USD/INR defends the 74.00 threshold, snapping a two-day pullback from late-April top amid the initial Indian trading session on Tuesday. That said, the Indian rupee (INR) pair is up 0.07% intraday around 74.17 by the press time.

Although risk barometers are mildly positive and exert downside pressure on the US dollar, indirectly favoring the USD/INR bulls, uncertainty over the Fed’s outlook probe the pair buyers after declining for two consecutive days.

The Fed policymakers’ ability to convince markets of no immediate risk to the current rates and bond purchases seem to have dragged the greenback recently. Though, mixed comments from the US bankers keep traders on the edge.

Early in Asia, remarks of the Fed Chairman Jerome Powell crossed wires, via Reuters, suggesting inflation risk as transitory whereas comments from New York Fed President John C. Williams take multiple turns in his latest speech that recently mentioned that Fed is talking about talking tapering. Dallas Fed President Robert Kaplan was on the same line while favoring “taking the foot off the accelerator sooner rather than later.”

The Sino-American story also regains the market’s attention as Beijing’s ability to deliver trade deal promises risks fresh tensions even as Global Times terms the conditions as “make-or-break”. Elsewhere, improvement in the coronavirus (COVID-19) conditions in India and the US add to the market’s optimism and keep USD/INR pair sellers hopeful.

Amid these plays, US stock futures and Treasury yields remain mildly bid whereas the US dollar index (DXY) struggles to keep early Asian recovery moves. Further, India’s BSE Sensex prints 0.80% intraday gains to refresh record top as government fastens the jabbing.

Looking forward, US Existing Home Sales and Richmond Fed Manufacturing Index may entertain USD/INR traders, mostly teasing the bears, ahead of Fed Chairman Powell’s testimony. Although Powell is up for taming the tapering and rate hike woes, any negative surprises, should justify the USD/INR pair’s defensive performance above the 74.00 round figure and can aim to refresh the monthly high.

Technical analysis

Pullbacks from the mid-April tops join receding bullish bias of the MACD histogram to direct USD/INR towards 50-day SMA retest, around 73.65.

Additional important levels

Overview
Today last price	74.173
Today Daily Change	0.0540
Today Daily Change %	0.07%
Today daily open	74.119

Trends
Daily SMA20	73.1545
Daily SMA50	73.6851
Daily SMA100	73.3362
Daily SMA200	73.4804

Levels
Previous Daily High	74.445
Previous Daily Low	74.0669
Previous Weekly High	74.4752
Previous Weekly Low	73.1046
Previous Monthly High	74.311
Previous Monthly Low	72.3386
Daily Fibonacci 38.2%	74.2113
Daily Fibonacci 61.8%	74.3006
Daily Pivot Point S1	73.9756
Daily Pivot Point S2	73.8322
Daily Pivot Point S3	73.5975
Daily Pivot Point R1	74.3537
Daily Pivot Point R2	74.5884
Daily Pivot Point R3	74.7318

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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