- USD/INR continues to auction above 82.00 ahead of US inflation data.
- FIIs are turning to buyers in the Indian market after months of adjustment.
- Crude oil prices are expected to rise above $81.50 on hopes that the Federal Reserve (Fed) will reach its final interest rate early.
The USD/INR pair has opened flat above 82.00, but remains volatile as investors await the release of US inflation data and the Federal Open Market Committee (FOMC) minutes. expected to continue.
The US Dollar Index (DXY) is trying to recover after a sharp correction near 102.04 as investors wary ahead of inflation data. Meanwhile, S&P 500 futures have eased much of the rally in early Asia amid worries ahead of the quarterly earnings season, signaling caution in an overall upbeat market mood.
The Indian Rupee is also expected to show some volatility as the annual earnings season is fast approaching. Meanwhile, Foreign Institutional Investors (FIIs) are turning to buyers in the Indian market after months of consolidation.
On the oil front, oil prices are expected to rise above $81.50 on hopes that the Federal Reserve (Fed) will reach its final interest rate sooner.
After a solid recovery, USD/INR reached near the top of the descending channel formed on the 4 hour scale. All dips in the aforementioned chart patterns are viewed as buying opportunities by market participants. A 20-period exponential moving average (EMA) of around 82.00 is providing a cushion for the USD bulls.
Also, the Relative Strength Index (RSI) (14) is trying to break above the 60.00 level. When the same thing happens, it will trigger upward momentum.
If the asset breaks out of the April 5 high of 82.20, the USD bulls will push the major towards the April 3 high of 82.45 and the March 22 high of 82.70.
Alternatively, if the April 7 low of 81.75 breaks below, the asset will drag to the March 6 low of 81.57 and then to the January low of 81.30.
USD/INR 4-hour chart
