#USDINR @ 82.8230 is aiming to shift its auction profile above 82.80 amid recovery attempts by the USD Index. (Pivot Orderbook analysis)

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• USD/INR is aiming to shift its auction profile above 82.80 amid recovery attempts by the USD Index.
• Investors are expected to remain anxious ahead of the release of the FOMC minutes.
• The 10-year US Treasury yields have dropped marginally to near 3.94% after printing a fresh three-month high of 3.96%.

The pair currently trades last at 82.8230.

The previous day high was 82.9176 while the previous day low was 82.6752. The daily 38.2% Fib levels comes at 82.825, expected to provide resistance. Similarly, the daily 61.8% fib level is at 82.7677, expected to provide support.

The USD/INR pair is attempting to surpass the immediate resistance of 82.80 in the Asian session. The asset is expected to yet discount the impact of the overnight jump in the US Treasury yields, supported by upbeat preliminary S&P United States PMI data.

The preliminary S&P Manufacturing PMI (Feb) climbed to 47.8 from the consensus of 47.3 and the former release of 46.9. The Services PMI soared to 50.5 from the estimates of 47.2 and the prior release of 46.8. A rebound in economic activities is bolstering the case of further policy tightening by the Federal Reserve (Fed). No doubt, the expansionary economic activities indicate that consumer spending is recovering again and it could trigger a pause in the inflation softening in the United States.

The US Dollar Index (DXY) has attempted a rebound after a corrective move to near 103.70. The USD Index is aiming to recapture Tuesday’s high around 103.90 as investors are expected to remain anxious ahead of the release of the Federal Open Market Committee (FOMC) minutes.

S&P500 futures have shown a recovery move after a super-bearish Tuesday. The situation is not ripe for building longs in the risk-sensitive assets as the overall market mood is favoring the risk aversion theme. Meanwhile, the 10-year US Treasury yields have dropped marginally to near 3.94% after printing a fresh three-month high of 3.96% on Tuesday.

On the Indian Rupee front, rising chances of a further hike in the repo rate managed by the Reserve Bank of India (RBI) could support the Indian Rupee. Inflationary pressures in the Indian economy have not been trimmed yet, therefore, the RBI might favor the continuation of the 25 bps rate hike spell ahead.

Technical Levels: Supports and Resistances

USDINR currently trading at 82.8215 at the time of writing. Pair opened at 82.8557 and is trading with a change of -0.04 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 82.3356, 50 SMA 82.2632, 100 SMA @ 82.1356 and 200 SMA @ 80.6811.

The previous day high was 82.9176 while the previous day low was 82.6752. The daily 38.2% Fib levels comes at 82.825, expected to provide resistance. Similarly, the daily 61.8% fib level is at 82.7677, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 82.7147, 82.5737, 82.4723
• Pivot resistance is noted at 82.9571, 83.0585, 83.1995

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