USDINR picks up bids to snap two-day losing streak. (Pivot Orderbook analysis)

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• USDINR picks up bids to snap two-day losing streak.
• China’s defense of zero covid policy weighs on market sentiment.
• WTI Crude Oil prices jumped the most in six months before the bulls took a breather around the key resistance.
• Risk-off mood, and fears of high US inflation can keep buyers hopeful.

The pair currently trades last at 82.2144.

The previous day high was 82.993 while the previous day low was 81.846. The daily 38.2% Fib levels comes at 82.2842, expected to provide resistance. Similarly, the daily 61.8% fib level is at 82.5548, expected to provide resistance.

USDINR prints mild gains around 82.20 as risk-aversion weighs on the Indian rupee (INR) during Monday’s early European session. Also keeping the pair buyers hopeful are the firmer prices of WTI crude oil, as well as mixed concerns over the Fed’s next move.

That said, WTI Crude Oil pares the latest gains around $90.70, mildly offered while poking a three-month-old descending resistance line.

Elsewhere, China’s rejection of the hopes of dumping zero-covid policy joined an uptick in the virus numbers from the dragon nation to offer a negative start to the week. Even so, hopes of an increase in private investments in the world’s second-largest economy joined mixed concerns surrounding the US Federal Reserve’s (Fed) next move to keep the buyers hopeful.

On the same line could be China’s downbeat trade numbers and comments from Barclays suggesting a downward revision to India’s Financial Year 2023 (FY23) Gross Domestic Product (GDP) forecast to 5.1% from earlier expectations of 7.4%. Reuters said that the Reserve Bank of India (RBI) projects GDP growth for 2022-23 at 7%.

At home, India’s foreign exchange reserves rose to $531.08 billion in the week through Oct. 28, marking their biggest weekly gain since September 2021, the Reserve Bank of India’s (RBI) weekly statistical supplement showed on Friday, per Reuters.

It should be noted that the risk-aversion wave and higher oil prices can keep the USDINR buyers hopeful unless the US Consumer Price Index (CPI) data for October surprises the Fed hawks. “Despite the gain, the rupee closed flat last week. Traders were not very hopeful that Friday’s rally would extend this week given the lack of cues, except for the U.S. inflation report that traders say is not expected to surprise much,” said Reuters.

USDINR bears remain hopeful unless witnessing a daily closing beyond the 21-day EMA hurdle surrounding 82.30.

Technical Levels: Supports and Resistances

XTIUSD currently trading at 82.2144 at the time of writing. Pair opened at 82.138 and is trading with a change of 0.09% % .

The pair is trading below its 20 Daily moving average @ 82.4769, above its 50 Daily moving average @ 81.2885 , above its 100 Daily moving average @ 80.3121 and above its 200 Daily moving average @ 78.3528

The previous day high was 82.993 while the previous day low was 81.846. The daily 38.2% Fib levels comes at 82.2842, expected to provide resistance. Similarly, the daily 61.8% fib level is at 82.5548, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 81.6583, 81.1787, 80.5113
• Pivot resistance is noted at 82.8053, 83.4727, 83.9523

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