USD/INR stalls recovery just shy of 71.00 ahead of US data


  • The spot recovered in tandem with the US dollar index.
  • 71.00 remains a tough nut to crack for the bulls.
  • Trade deal optimism fades as US data takes centre stage.

USD/INR is seen consolidating the recovery from a new five-week low of 70.68 reached on Wednesday, as the bears continue to guard the 71 barrier.

The comeback in the spot can be mainly attributed to broad-based US dollar rebound from nearly weekly lows, as the greenback regained poise amid fading optimism over the US-China phase one trade deal. Markets remain wary over the effectiveness of the trade deal, as several thorny issues still remain unaddressed amid talks of phase two negotiations getting underway.

The Indian rupee shaved-off early gains fuelled by increased foreign fund inflows and gains in the domestic equity markets, as the prospects of the US-China trade relations improve following the phase one trade deal.

The latest drop in the rupee to near 71.95 low vs. the US dollar is also due to downbeat India’s exports data. India's exports declined 1.8% in December to $27.36 billion, registering fifth straight monthly fall. Meanwhile, the Indian traders ignored the latest report that India is considering drafting a new law to safeguard foreign investment that would aim to attract more capital from overseas.

Markets now look forward to the US Retail Sales data for fresh dollar trades, as the US-China trade matter likely takes a back seat.

USD/INR Technical levels to consider

USD/INR

Overview
Today last price 70.8625
Today Daily Change 0.1178
Today Daily Change % 0.17
Today daily open 70.745
 
Trends
Daily SMA20 71.2607
Daily SMA50 71.3522
Daily SMA100 71.2689
Daily SMA200 70.4972
 
Levels
Previous Daily High 71.14
Previous Daily Low 70.6825
Previous Weekly High 72.57
Previous Weekly Low 70.8485
Previous Monthly High 71.98
Previous Monthly Low 70.328
Daily Fibonacci 38.2% 70.8573
Daily Fibonacci 61.8% 70.9652
Daily Pivot Point S1 70.5717
Daily Pivot Point S2 70.3983
Daily Pivot Point S3 70.1142
Daily Pivot Point R1 71.0292
Daily Pivot Point R2 71.3133
Daily Pivot Point R3 71.4867

 

 

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