#USDINR @ 82.3470 is looking to extend the previous rebound amid hawkish Fed bets.
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- USD/INR is looking to extend the previous rebound amid hawkish Fed bets.
- Investors await India’s inflation after hotter CPI data from the US.
- The pair eyes daily close to confirming a rising wedge breakdown.
USD/INR is looking to build on Thursday’s late-rebound on the final trading day of the week, as the US dollar attempts a tepid bounce despite weaker Treasury yields and an extended risk-on rally in the Asian stocks.
Meanwhile, rising oil prices combined with hotter US inflation-led expectations of Fed rate hikes could limit the further upside in the spot. Attention now turns towards the Indian Whole Sale Price Index (WPI) release ahead of the US Retail Sales and UoM Consumer Sentiment data for fresh trading impetus on the spot.
At the time of writing, USD/INR is posting minor gains near 82.30, having breached the rising trendline support at 82.32. Bears, however, need a daily closing below the latter to confirm a rising wedge breakdown on daily sticks.
Although the 14-day Relative Strength Index (RSI) is inching towards the overbought zone above the midline, contracting the looming rising wedge formation.
If bulls manage to recapture and sustain above the aforesaid critical support-turned-resistance at 82.32, the next upside target is seen at the 82.50 psychological level.
In case of a downside break, Thursday’s low at 82.02 will offer immediate support. A breach of the last will kick off a fresh downswing towards the bullish 21-Daily Moving Average (DMA) at 81.45.
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