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.

Dhwani Mehta FXStreet

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

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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