USD/INR Price Forecast – Resistance At 83 Stays Strong

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

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.

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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