#USDINR @ 80.0400 -imp levels: is attempting to establish above 80.00 on soured market mood.

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• USD/INR is attempting to establish above 80.00 on soured market mood.
• The Fed is expected to announce a third consecutive 75 bps rate hike further.
• India’s GDP is expected to have grown in a range of 13-16.2% in the second quarter.

The pair currently trades last at 80.0400.

The previous day high was 80.1336 while the previous day low was 79.7492. The daily 38.2% Fib levels comes at 79.9868, expected to provide support. Similarly, the daily 61.8% fib level is at 79.896, expected to provide support.

The USD/INR pair has opened above the psychological resistance of 80.00 as signals of the continuation of restrictive policy by the Federal Reserve (Fed) spiraled negative market sentiment. The asset is preparing for a fresh buying leg and is expected to recapture its all-time highs at 80.21.

An adaptation of the restrictive approach by Fed chair Jerome Powell at the Jackson Hole Economic Symposium while discussing interest rates cleared one thing that investors need to comprise with growth rates and employment generation for a period of time. Bringing price stability and achieving an optimal inflation rate near 2% will demand sacrifices in growth projections and job creation. However, the impact will be for the greater good and for a prolonged period.

Now, investors should brace for a third consecutive 75 basis points (bps) rate hike by the Fed in its September monetary policy meeting.

Meanwhile, oil prices have resumed their upside journey and have climbed to near $94.00. It seems that investors are betting over supply cuts by OPEC rather than a decline in global growth projections. It is worth noting that India is a leading importer of oil and a rebound in oil prices may impact the Indian fiscal balance sheet.

Looking at the data front, the US Nonfarm Payrolls (NFP) will remain in limelight. The economic data is expected to trim dramatically to 290k against the prior release of 528k. While in India, investors’ entire focus will be on Gross Domestic Product (GDP) data for the second quarter. The Indian economy is expected to have grown in a range of 13-16.2% in the second quarter of CY2022.

Technical Levels: Supports and Resistances

USDINR currently trading at 79.9936 at the time of writing. Pair opened at 79.9593 and is trading with a change of 0.04 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 79.4922, 50 SMA 79.3357, 100 SMA @ 78.2455 and 200 SMA @ 76.7572.

The previous day high was 80.1336 while the previous day low was 79.7492. The daily 38.2% Fib levels comes at 79.9868, expected to provide support. Similarly, the daily 61.8% fib level is at 79.896, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 79.7611, 79.5629, 79.3766
• Pivot resistance is noted at 80.1456, 80.3319, 80.5301

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