USDINR Technical Analysis: Key resistance reached, US NFP in focus next

USDINR Key Resistance and Market Trends

USDINR has recently reached a new record high, entering the resistance zone at 91.00. Typically, when levels like this are reached, sellers tend to emerge, making it a potential reversal point. Therefore, upcoming market movements warrant close attention. The selling pressure is intensifying near the resistance level of 91.00.

USD Weakness and INR Dynamics

Meanwhile, the US dollar has been weakening against major currencies, particularly with labor market indicators under scrutiny. The recent FOMC meeting saw a 25 basis point cut in US rates, raising expectations for future cuts. The upcoming NFP and CPI reports are critical; if strong data is released, it could positively impact the US dollar.

Technical Analysis

From a technical standpoint, the daily chart shows that USDINR has reached the upper bound of a rising channel. It is expected that sellers will step in at this point, raising the risk of a pullback. Additionally, on the four-hour chart, bullish momentum has stalled near 91.00, indicating that price movement around this level is noteworthy. A break above could lead to new highs.

Upcoming Catalysts

Today’s release of the US NFP is a significant catalyst, and market participants should pay close attention to how the results may influence USDINR’s movements ahead.