USDINR Technical Analysis: Indian Rupee falls to a new record low despite weaker USD

Indian Rupee Hits New Record Low

The Indian Rupee (INR) has reached a new record low against the US Dollar (USD), primarily driven by the Federal Reserve's decision on interest rates. While the Fed delivered a dovish message by downplaying inflation risks, the structural headwinds in India keep the USDINR pair on a bullish trajectory, resulting in further depreciation of the INR.

Technical Analysis: Rising Channel and Supporting Zones

On the daily chart, USDINR is trading within a rising channel, nearing the upper boundary around the 91.00 level. If the price reaches this level, sellers are expected to step in for a potential pullback. Meanwhile, buyers are looking for a breakout above 91.00 to target new highs. In the 4-hour chart, the pair saw a rise to a new record high before experiencing a slight pullback. Sellers are likely to enter with risk defined above recent highs aiming for the 89.70 support level. Conversely, buyers want to see a breakout to the upside for bullish positioning toward new records. In the hourly timeframe, a break above the minor resistance at 90.05 increased momentum as buyers pushed in, targeting higher record levels. Should a pullback occur, buyers will look to dip buying around 90.05 and the support at 89.70.

Upcoming Catalysts

Indian inflation data set to be released tomorrow, along with ongoing trade discussions with the US, will be closely monitored by traders for further market impact.