• USD/INR remains pressured inside a bullish chart pattern after reversing from all-time high.
  • RBI takes measures to boost USD inflow, tame current account deficit.
  • Reuters’ poll signals 33% of respondents favor 80.00 level, no respite for India’s rupee.
  • Economic slowdown chatters eyed for fresh impulse, second-tier US data could entertain traders.

USD/INR remains defensive above 79.00, after reversing from the record high the previous day, as the Reserve Bank of India (RBI) intervenes. That said, the US dollar pullback and sluggish markets also challenge the recent USD/INR moves during Thursday’s Asian session.

“India's central bank took a slew of measures on Wednesday to boost foreign exchange inflows, including allowing overseas investors to buy short-term corporate debt and opening of more government securities under the fully accessible route,” said Reuters.

The news also mentioned that the steps came after the Reserve Bank of India's foreign exchange reserves fell by more than $40 billion over the past nine months, largely due to the RBI's intervention in the currency market to cap rupee losses.

Elsewhere, a Reuters poll stated India's rupee will trade near its historic low in three months, battered by widening trade and current account deficits. The July 1-6 poll of over 40 foreign exchange analysts also mentioned that nearly one in three analysts expected it to weaken to 80 per dollar by September.

It’s worth noting that the recent rebound in oil prices, from a 12-week low, joins the market’s recession fears to keep USD/INR buyers hopeful. That said, WTI crude oil prices eyes to regain the $100.00 level, around $96.60 by the press time. In doing so, the black gold ignores the market’s fears of economic slowdown and a build in the US inventories, as per the weekly oil stockpile data from the American Petroleum Institute (API).

Moving on, the US Weekly Jobless Claims and monthly trade numbers will decorate the calendar and direct short-term moves ahead of Friday's US Nonfarm Payrolls (NFP).

Technical analysis

USD/INR stays inside a weekly ascending trend channel amid a steady RSI (14). However, bearish MACD signals challenge the buyers.

That said, the 50-SMA level of 78.93 adds to the immediate downside filters, other than the stated channel’s support line near 78.95.

Even if the quote drops below 78.95, a convergence of the monthly support line and early June’s swing high could test the pair sellers around 78.40.

Alternatively, 79.10 and the aforementioned channel’s upper line, near 79.45 could challenge USD/INR buyers on their way to refreshing the record high with the 80.00 threshold.

USD/INR: Four-hour chart

Trend: Bullish

Additional important levels

Overview
Today last price 79.0932
Today Daily Change 0.0530
Today Daily Change % 0.07%
Today daily open 79.0402
 
Trends
Daily SMA20 78.415
Daily SMA50 77.7566
Daily SMA100 76.8746
Daily SMA200 75.8527
 
Levels
Previous Daily High 79.557
Previous Daily Low 78.9341
Previous Weekly High 79.216
Previous Weekly Low 78.204
Previous Monthly High 79.091
Previous Monthly Low 77.3791
Daily Fibonacci 38.2% 79.1721
Daily Fibonacci 61.8% 79.3191
Daily Pivot Point S1 78.7972
Daily Pivot Point S2 78.5542
Daily Pivot Point S3 78.1743
Daily Pivot Point R1 79.4202
Daily Pivot Point R2 79.8001
Daily Pivot Point R3 80.0431

 

 

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 Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD stays below 0.9800 after US inflation data

EUR/USD stays below 0.9800 after US inflation data

EUR/USD continues to trade in negative territory below 0.9800 in the American session on Friday. The data from the US showed that the annual PCE inflation declined to 6.2% in August but the stronger-than-expected core reading didn't allow the pair to gain traction.

EUR/USD News

GBP/USD rebounds from daily lows, reclaims 1.1100

GBP/USD rebounds from daily lows, reclaims 1.1100

GBP/USD fell to a fresh daily low below 1.1030 but managed to reverse its direction and climbed above 1.1100 during the American trading hours on Friday. The pair remains on track to snap a two-week losing streak despite having suffered heavy losses earlier in the week.

GBP/USD News

Gold extends daily rally beyond $1,670

Gold extends daily rally beyond $1,670

Gold preserved its bullish momentum and rose above $1,670 after the mixed inflation data from the US on Friday. The benchmark 10-year yield is down more than 2% as markets look to wrap up the third quarter, fueling XAU/USD's daily rally. 

Gold News

Shiba Eternity download day the biggest bullish catalyst in SHIB history?

Shiba Eternity download day the biggest bullish catalyst in SHIB history?

Shytoshi Kusama, the project lead for Shiba Inu, has dropped a teaser about Shiba Eternity games for the SHIB community. Proponents expect the launch of the collectible card game to be a bullish catalyst for Shiba Inu price. 

Read more

SPDR S&P 500 ETF Trust (SPY) Forecast: We are teetering on the brink

SPDR S&P 500 ETF Trust (SPY) Forecast: We are teetering on the brink

Equity markets remain at the precipice of a technical collapse, which we examine in the weekly long-term chart below. The overall picture remains one of nervousness ahead of the upcoming Q3 earnings season.

Read more

Forex MAJORS

Cryptocurrencies

Signatures