USD/INR Price News: Indian rupee recovers from key support below 74.00 ahead of US PMI


  • USD/INR snaps two-day uptrend, extends pullback from two-month-old resistance line.
  • Upbeat sentiment, off in Japan underpin US dollar’s consolidation of Fed-led gains.
  • India’s virus-led death toll eases but infections stay firmer.
  • Preliminary Markit PMIs for September, China’s Evergrande in focus.

USD/INR remains on the back foot around 73.75, down 0.14% on a day while stopping two-day advances heading into Thursday’s European session.

The Indian rupee (INR) pair refreshed it's monthly high the previous day after the US Federal Reserve (Fed) provided signals for the much-awaited tapering of the bond purchases. However, the following risk-on mood dragged the quote back from a descending trend line from July 19.

The headlines concerning Evergrande and doubts over the Fed rate hike could be linked to the recent optimism in the market. Also, chatters that the US policymakers make progress on the much-awaited stimulus and the US Food and Drug Administration (FDA) approved Pfizer booster shot of the covid vaccine for the aged above 65 add to the upbeat sentiment.

Additionally, an off in Japan restricts bond trading and allows markets to consolidate the US dollar’s Fed-led gains. That said, S&P 500 Futures print mild gains, up for the second day to portray the risk-on mood and weigh on the greenback’s safe-haven demand.

It’s worth noting that a reduction in India’s COVID-19 related deaths, from 383 to 282, battles the escalating virus cases, up 31,923 versus 26,974 reported the previous day.

Given the indecision of the Fed rate hike past 2022, when the tapering is likely to end, coupled with the recent stimulus hopes from the US, the US Dollar Index (DXY) pullback from monthly peak may extend, which in turn can weigh on the USD/INR prices. On the same line were expectations that China will safeguard the economy from the Evergrande blow.

Though, today’s flash readings of September month activity data from the Markit and weekly job numbers for the US will be important factors to watch.

Technical analysis

Bullish MACD signals and an ascending support line from September 03, near 73.60, keep USD/INR buyers hopeful, the stated resistance line and 50-DMA, respectively around 73.95 and 94.00 challenge the pair’s upside.

USD/INR: Daily chart

Trend: Further upside expected

Additional important levels

Overview
Today last price 73.8114
Today Daily Change -0.0596
Today Daily Change % -0.08%
Today daily open 73.871
 
Trends
Daily SMA20 73.4826
Daily SMA50 74.0072
Daily SMA100 73.8151
Daily SMA200 73.5855
 
Levels
Previous Daily High 73.9625
Previous Daily Low 73.667
Previous Weekly High 73.7915
Previous Weekly Low 73.352
Previous Monthly High 74.5575
Previous Monthly Low 72.911
Daily Fibonacci 38.2% 73.8496
Daily Fibonacci 61.8% 73.7799
Daily Pivot Point S1 73.7045
Daily Pivot Point S2 73.538
Daily Pivot Point S3 73.409
Daily Pivot Point R1 74
Daily Pivot Point R2 74.129
Daily Pivot Point R3 74.2955

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD rebounds to 1.1350 on modest dollar weakness

EUR/USD regained its traction after declining toward 1.1320 during the European session and rose to 1.1350 area. The dollar's is facing modest selling pressure amid falling US Treasury bond yields and allowing the pair to continue to edge higher ahead of the weekend.

EUR/USD News

GBP/USD struggles to pull away from 10-day low set near 1.3550

GBP/USD fell toward 1.3550 on Friday and touched its weakest level in 10 days. Although the US Dollar Index stays in the negative territory in the early American session, the risk-averse market environment doesn't allow the pair to stage a convincing recovery.

GBP/USD News

Gold reclaims $1,840 amid falling US T-bond yields

Gold reversed its direction after testing $1,830 earlier in the day and turned positive on the day above $1,840. The benchmark 10-year US Treasury bond yield is losing more than 3% at 1.75%, fueling XAU/USD's rebound.

Gold News

BTC may capitulate to $30,000

Bitcoin price has dropped considerably over the last three weeks. The recent downswing has made things worse for BTC and hints that a steep correction could be on its way.

Read more

Will the Netflix stock price rebound?

Netflix stock edged down after better than expected Q4 results. Will the Netflix stock price rebound? Expectations of rising subscription and higher prices are bullish for Netflix stock price.

Read more

Forex MAJORS

Cryptocurrencies

Signatures