The focus turns to US CPI with Indian Rupee trading in a crucial spot versus the US Dollar

The article discusses the Indian Rupee (INR) continuing its bearish trend against the US Dollar (USD), but recent positive developments regarding tariffs and inflation have provided a temporary boost. A crucial trade deal between the US and India, where tariffs were reduced from 25% to 18%, has contributed to this shift positively. The focus now shifts to the upcoming US CPI report. The Fed appears unconvinced that the labor market influences inflation, implying that a soft CPI report might not alter market expectations, while a stronger CPI could cause the USD to rally. Technical analysis indicates that on the daily chart, USDINR is rejecting the lower bound of a channel, with a rally anticipated towards the 93.00 mark, which is a significant resistance level. Conversely, sellers are looking for a break to the downside targeting 89.50. The 4-hour chart highlights strong resistance around 91.00, which traders will watch closely for breaks that could confirm bullish setups or open the door for bearish opportunities below the channel’s lower bound. Today’s CPI report will likely act as a major catalyst for future movements in the USDINR.