USD/INR Technical Analysis: Hits 6-week high, Falling wegde seen on weekly chart

Omkar Godbole FXStreet Contributor

USD/INR gapped higher at 69.78 and rose to 69.875, the highest level since March 11.

India, the world’s fastest growing economy is energy dependent and runs a current account deficit. Hence, oil rally tends to weigh over the Indian rupee.

Brent oil jumped to five months earlier today after reports that the wires stating that the US is planning to force Iranian oil exports to zero.

The US reimposed sanctions on Iran’s energy sector in November last year after Trump unilaterally moved out of the nuclear accord. The US government, however, had offered waivers to India, Japan and a few other nations.

If reports are to be believed then the Trump Administration may no longer grant waivers, creating a bigger supply deficit in the oil market and complicating matters for countries like India.

A sustained rally in oil prices could yield a falling wedge breakout on USD/INR’s weekly chart. That would signal a revival or continuation of the rally from the low of 63.25 seen in January 2018 and create room for re-test of record highs above 74.00 over the next few quarters.

Weekly chart

Trend: Bullish above falling wedge resistance

USD/INR

Overview
Today last price	69.831
Today Daily Change	0.4410
Today Daily Change %	0.64
Today daily open	69.39

Trends
Daily SMA20	69.1838
Daily SMA50	69.8542
Daily SMA100	70.3381
Daily SMA200	70.8759

Levels
Previous Daily High	69.765
Previous Daily Low	69.3385
Previous Weekly High	69.895
Previous Weekly Low	69.005
Previous Monthly High	71.24
Previous Monthly Low	68.3415
Daily Fibonacci 38.2%	69.5014
Daily Fibonacci 61.8%	69.6021
Daily Pivot Point S1	69.2307
Daily Pivot Point S2	69.0713
Daily Pivot Point S3	68.8042
Daily Pivot Point R1	69.6572
Daily Pivot Point R2	69.9243
Daily Pivot Point R3	70.0837

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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