USDINR Technical Analysis: RBI intervenes to stop the Rupee selloff. Another failed try?

RBI Intervention and Rupee Selloff

The RBI has intervened to stop the recent selloff of the Indian Rupee. This intervention has occurred before, but if the underlying fundamentals remain unchanged, the Rupee may slump to new lows again. The market will be watching closely for future developments.

Impact of US Economic Indicators

The US unemployment rate has surprised to the upside, indicating economic resilience. However, the rise to 4.6% could alter the Fed's stance. Chairman Powell has focused on labor market weaknesses and is willing to tolerate inflation increases. Market reactions are expected after tomorrow's US CPI release.

Technical Analysis of USDINR

Daily Chart

On the daily chart, USDINR has reversed from the upper bound of a rising channel around 91.00. Sellers should target the lower bound at 89.00, but they must keep the price below key zones.

4-Hour Chart

The 4-hour chart shows that price is bouncing around an upward trendline, currently trading at the key level of 90.40. Sellers are likely to come in here to target a drop to 89.70. Buyers need to see a break above 90.40 to position for new all-time highs.

Upcoming Catalysts

Attention is on the upcoming US CPI report, which may further clarify the trend for USDINR.