USD/INR Price Forecast – Resistance At 83 Stays Strong

Vladimir Zernov
Updated: Feb 21, 2023, 04:38 GMT+00:00

The recent attempt to settle above the 83 level was not successful, but USD/INR continues to trade near this key resistance.


In this article:

Key Insights

  • USD/INR faced strong resistance near the 83 level and pulled back. 
  • This week, traders will focus on Monetary Policy Meeting Minutes, which will be released on Wednesday. 
  • The current trend stays strong, and USD/INR has a decent chance to settle above the 83 level in the upcoming weeks. 

USD/INR Has Stabilized Near Recent Highs

USD/INR remains stuck below the 83 level as bulls are not ready to increase their long positions below the important resistance level.

Last week, USD/INR made an attempt to settle above the 83 level but faced strong resistance and pulled back. The key question is whether RBI will try to defend the 83 level in case USD/INR tests it again.

On Wednesday, India will release Monetary Policy Meeting Minutes, which may have a material impact on USD/INR dynamics. RBI has recently increased the Interest Rate from 6.25% to 6.5%, so traders will be focused on the details of this decision.

USD/INR Faced Strong Resistance Near The 83 Level

USD/INR 200223 Daily Chart

From a technical point of view, USD/INR is trying to stabilize after an unsuccessful attempt to settle above the 83 level. Traders should note that this level has been tested many times back in December. RSI remains in the moderate territory, and there is enough room to develop additional upside momentum. However, additional catalysts will be needed to settle above 83.

USD/INR 200223 Monthly Chart

Taking a look at the monthly chart, RSI remains in the overbought territory, although it has pulled back from recent highs. The upside trend is extremely strong as USD/INR has been moving higher for many years. The 83 level is clearly visible on a monthly chart. A successful test of this level will provide USD/INR with an opportunity to gain sustainable upside momentum. In this scenario, USD/INR may quickly get to the test of the 84 level.

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About the Author

Vladimir is an independent trader and analyst with over 10 years of experience in the financial markets. He is a specialist in stocks, futures, Forex, indices, and commodities areas using long-term positional trading and swing trading.

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