#USDINR @ 79.8730 -imp levels: is advancing towards 80.00 as a hawkish Fed Powell’s commentary looks imminent.

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• USD/INR is advancing towards 80.00 as a hawkish Fed Powell’s commentary looks imminent.
• The Indian rupee is enjoying significant foreign inflows after its indices bottomed out.
• Oil prices are expected to conclude their correction and may resume an upside journey.

The pair currently trades last at 79.8730.

The previous day high was 80.0428 while the previous day low was 79.755. The daily 38.2% Fib levels comes at 79.9329, expected to provide resistance. Similarly, the daily 61.8% fib level is at 79.865, expected to provide support.

The USD/INR pair is displaying extreme volatile moves in the opening session as investors are paring positions ahead of the Federal Reserve (Fed) chair Jerome Powell’s commentary at the Jackson Hole Economic Symposium. The asset is expected to remain volatile, however, the upside remains favored as Fed’s Powell is expected to adopt a hawkish stance on guidance over interest rates.

As the inflation rate is still above 8% despite displaying exhaustion signals, more rate hikes announcement seems imminent. The foremost agenda of the Fed is to bring price stability in the economy as households are facing the heat due to lower valued paychecks. The investing community has already seen the consequences of inflationary pressures.

Meanwhile, the Indian economy is enjoying stellar inflows of foreign institutional investment for the past month after the Indian indices bottomed out. Well, the Indian rupee is underperforming against the mighty US dollar index (DXY) as investors have remained majorly risk-averse this year. But the performance of the Indian rupee has remained stellar against other powerful currencies.

On the oil front, a meaningful correction seems lucrative for the Indian rupee as its major portion of imports contains oil stockpiles. However, the correction in the oil prices is expected to conclude sooner and a fresh rally will kickstart. As OPEC will start trimming their oil production, oil prices will display more gains but simultaneously more deficit for the Indian fiscal balance sheet.

Technical Levels: Supports and Resistances

USDINR currently trading at 79.8494 at the time of writing. Pair opened at 79.8681 and is trading with a change of -0.02 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 79.454, 50 SMA 79.2957, 100 SMA @ 78.2051 and 200 SMA @ 76.7291.

The previous day high was 80.0428 while the previous day low was 79.755. The daily 38.2% Fib levels comes at 79.9329, expected to provide resistance. Similarly, the daily 61.8% fib level is at 79.865, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 79.7344, 79.6008, 79.4466
• Pivot resistance is noted at 80.0223, 80.1765, 80.3102

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