- USD/INR consolidation continues; struggles to break key resistance at 83.00 level.
- Indian Rupee lacks momentum despite strong economic fundamentals.
- Higher lows indicate a potential breakout for USD/INR.
USD/INR has been in a consolidation phase since October 2022, with the pair ranging between the 81.00 and 83.00 levels. Despite four attempts on a daily timeframe, the pair has failed to break through the key psychological resistance of 83.00. Although India's strong economic fundamentals make it an attractive choice for investors seeking the next growth story, the Indian Rupee lacks momentum.
Currently hovering around 82.21, USD/INR is capped by both the 21-Day Moving Average (DMA) and 51-DMA, slightly above the 82.21 mark.
If the pair surpasses both DMAs, USD/INR will re-test the 83.00 mark for the fifth time. On the other hand, the first support is seen at the psychological 82.00 mark, which is just below the previous week's low. A decisive break below this level could send the pair towards the March low of 81.60, followed by the yearly low at 81.00. The last line of support is placed at 80.42; a previous resistance now turned into support.
The pair is gradually moving upwards by forming higher lows, and strong bullish US dollar momentum could propel the pair to break the critical 83.00 mark.
The Relative Strength Index (RSI) signals a neutral midpoint, suggesting the pair could move up or down.
The US economic calendar will feature the Personal Consumption Expenditure (PCE) later this week, and the pair will likely take cues from that release.
USD/INR: Daily chart
-638155757020219695.png)
Recommended content
Editors’ Picks
EUR/USD extends slide toward 1.0300, touches new two-year low
EUR/USD stays under bearish pressure and trades at its lowest level since December 2022 below 1.0350 on Thursday. The pair turned south amid a resurgent US Dollar demand and worsening market mood. Investors stay cautious at the onset of 2025, awaiting the US jobs data for fresh incentives.
GBP/USD slumps to multi-month lows below 1.2450
Following an earlier recovery attempt, GBP/USD reversed its direction and declined to its weakest level in nearly eight months below 1.2450. The renewed US Dollar (USD) strength on worsening risk mood weighs on the pair as markets await mid-tier data releases.
Gold benefits from risk aversion, climbs above $2,640
Gold gathers recovery momentum and trades at a two-week-high above $2,640 heading into the American session on Thursday. The precious metal benefits from the sour market mood and the pullback seen in the US Treasury bond yields.
XRP rockets 11% as Bitcoin starts New Year with bullish bang
Crypto majors zoomed higher in the past 24 hours as the market entered a widely expected bullish year, with Bitcoin inching above $95,000 to shake off losses from last week. XRP surged 11% to lead growth among majors as of Thursday, led by $1.3 billion worth of trading volumes on Korea-focused exchange UpBit.
Three Fundamentals: Year-end flows, Jobless Claims and ISM Manufacturing PMI stand out Premium
Money managers may adjust their portfolios ahead of the year-end. Weekly US Jobless Claims serve as the first meaningful release in 2025. The ISM Manufacturing PMI provides an initial indication ahead of Nonfarm Payrolls.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.