#USDINR @ 82.2020 picks up bids to reverse Monday’s pullback from one-week high. (Pivot Orderbook analysis)

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for PREMIUM VERSION HERE to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level4)]

• USD/INR picks up bids to reverse Monday’s pullback from one-week high.
• Firmer Oil price, US Dollar’s consolidation weighs on Rupee amid India holiday.
• US Factory Orders may entertain intraday traders ahead of Wednesday’s RBI Interest Rate decision.
• Friday’s US NFP appears crucial amid receding hawkish Fed bets.

The pair currently trades last at 82.2020.

The previous day high was 82.5092 while the previous day low was 82.0943. The daily 38.2% Fib levels comes at 82.2528, expected to provide resistance. Similarly, the daily 61.8% fib level is at 82.3507, expected to provide resistance.

USD/INR regains upside momentum as bulls prod 82.22 level during early Tuesday, after a downbeat start of the week. In doing so, the Indian Rupee (INR) pair justifies the US Dollar’s corrective bounce amid the Indian holiday and a sluggish trading session of the day.

That said, the US Dollar Index (DXY) prints mild gains around 102.20 after falling the most since March 22 the previous day. With this, the greenback’s gauge versus the six major currencies rebound from the one-week low amid inactive markets.

The mixed concerns surrounding OPEC+ led shock to inflation and the Federal Reserve’s (Fed) next moves seem to have allowed the US Treasury yields and the US Dollar to pare recent losses.

On the same line could be the firmer Oil price, which in turn weighs on the INR due to India’s heavy reliance on energy imports and higher Current Account Deficit (CAD). That said, WTI crude oil rose nearly 7.0% to $81.00 the previous day, up 0.85% intraday to $80.85 by the press time.

It’s worth observing that the Indian Rupee’s latest weakness could be linked to the cautious mood ahead of the RBI.

While portraying the mood, the S&P 500 Futures struggle for clear directions after Wall Street closed mixed whereas the US 10-year and two-year Treasury bond yields remain inactive around 3.42% and 3.98%.

Looking forward, the holiday in India joins a light calendar elsewhere, apart from the US Factory Orders for February, which can allow the USD/INR pair to consolidate recent losses. However, the buyers should remain mindful of the likely hawkish plays of the Reserve Bank of India (RBI), scheduled for Wednesday, as well as the latest downbeat concerns surrounding the Fed.

It should be noted that Wednesday’s US ISM Services PMI, ADP Employment Change and Friday’s Nonfarm Payrolls (NFP), can act as additional catalysts to watch for clear directions, even if the pair traders remain confused after the RBI announcements.

Despite repeated bounces off a 10-week-old ascending support line, around 82.10 by the press time, the bearish MACD signals and steady RSI (14) challenges USD/INR bulls unless the quote manages to cross descending resistance line from mid-March, near 82.50 at the latest.

Technical Levels: Supports and Resistances

USDINR currently trading at 82.2225 at the time of writing. Pair opened at 82.1404 and is trading with a change of 0.10% % .

The pair is trading below its 20 Daily moving average @ 82.3042, below its 50 Daily moving average @ 82.3271 , above its 100 Daily moving average @ 82.1878 and above its 200 Daily moving average @ 81.3368

The previous day high was 82.5092 while the previous day low was 82.0943. The daily 38.2% Fib levels comes at 82.2528, expected to provide resistance. Similarly, the daily 61.8% fib level is at 82.3507, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 81.9867, 81.833, 81.5718
• Pivot resistance is noted at 82.4017, 82.6629, 82.8166

[/s2If]
Join Our Telegram Group