#USDINR @ 81.5850 Price News: Scales firmly above 81.60 as USD Index recovers, US PCE eyed (Pivot Orderbook analysis)

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The pair currently trades last at 81.5850.

The previous day high was 81.5786 while the previous day low was 81.3557. The daily 38.2% Fib levels comes at 81.4934, expected to provide support. Similarly, the daily 61.8% fib level is at 81.4408, expected to provide support.

The USD/INR pair has witnessed a respopsive buying interest after droping to near 81.40. The asset has been scaled above 81.60 and is expected to extend gains, following the footprints of the US Dollar Index (DXY). The risk appetite of the amrket participants has dropped significantly as investors are shifting their focus towards the announcmenet of the interest rate decision by the Federal Reserve (Fed).

But before that, investors will keep an eye over the release of the United States Personal Consumption Expenditure (PCE) Price Index (Dec) data. Reuters estimates show that markets expect the core PCE inflation, which excludes volatile food and energy prices, to rise 0.3% on a monthly basis and forecast the annual rate to decline to 4.4% from 4.7% in November. A decline in the economic data shouldn’t surprise investors as Decembers’ core Producer Price Index (PPI) and Consumer Price Index (CPI) have already dropped significantly.

Volatilty triggered in the market ahead of the Fed’ monetary policy has accelerated selling pressure in the risk-perceived assets. S&P500 futures have dropped sharply amid pessimism that further interest rate hikes by Fed chair Jerome Powell will accelerate recession fears. Firms will be forced to halt their recruitiment process or might look for laying-off employees in anticipation of weaker demand projections.

On the Indian Rupee front, fresh development over digital currency announced by the Reserve Bank of India (RBI) is impacting the Indian Rupee. RBI Executive Director Ajay Kumar mentioned that digital currency will further bolster the digital economy, make payment system more efficient.

Technical Levels: Supports and Resistances

USDINR currently trading at 81.6364 at the time of writing. Pair opened at 81.4901 and is trading with a change of 0.18 % .

The pair is trading below its 20 Daily moving average @ 81.8136, below its 50 Daily moving average @ 82.0564 , below its 100 Daily moving average @ 81.7987 and above its 200 Daily moving average @ 80.1818

The previous day high was 81.5786 while the previous day low was 81.3557. The daily 38.2% Fib levels comes at 81.4934, expected to provide support. Similarly, the daily 61.8% fib level is at 81.4408, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 81.371, 81.2519, 81.1482
• Pivot resistance is noted at 81.5939, 81.6976, 81.8167

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