USD/INR Price News: Indian rupee looks north, risk-off may play spoilsport

USD/INR's break below 100-day SMA suggests scope for continued gains in the rupee.
A pullback in stocks from record highs could yield temporary dollar strength.

Omkar Godbole FXStreet Contributor

The USD/INR pair closed below the 100-day Simple Moving Average (SMA) of 74.15 on Wednesday, paving the way for stronger gains in the Indian rupee in the near-term.

The Indian currency has risen from 74.75 to 74.11 per US dollar in the past few days amid the risk-on rally in the domestic and global stock markets. Risk assets, in general, have been bid this month on expectations that potential coronavirus vaccines would power a swift global economic recovery in 2021.

With the latest reports stating that Pfizer-BioNTech vaccine deliveries could start before Christmas, the path of least resistance for both stocks and the Indian rupee remains on the higher side. That said, at record highs, stocks look vulnerable to a technical pullback, which would put a bid under the greenback.

The dollar index, which gauges the greenback's value against majors, is trading in the green at press time, following the overnight losses on Wall Street. Additional bearish pressure for the rupee may stem from a potential breakout in Brent oil prices above the recent high of $45.30. That possibility cannot be ruled out as the OPEC+ is reportedly planning to delay the output boost planned to take effect in January.

Technical levels

USD/INR

Overview
Today last price	74.2686
Today Daily Change	0.1239
Today Daily Change %	0.17
Today daily open	74.1447

Trends
Daily SMA20	74.2279
Daily SMA50	73.7774
Daily SMA100	74.1656
Daily SMA200	74.62

Levels
Previous Daily High	74.5584
Previous Daily Low	74.0672
Previous Weekly High	74.795
Previous Weekly Low	73.6492
Previous Monthly High	74.693
Previous Monthly Low	72.9572
Daily Fibonacci 38.2%	74.2548
Daily Fibonacci 61.8%	74.3707
Daily Pivot Point S1	73.9551
Daily Pivot Point S2	73.7656
Daily Pivot Point S3	73.464
Daily Pivot Point R1	74.4463
Daily Pivot Point R2	74.7479
Daily Pivot Point R3	74.9374

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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