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  • USD/INR is poised for further upside, 76 levels on the cards.
  • Broad USD demand amid risk-off, Oil-price rally buoy the spot.
  • Focus on US ADP Jobs data and oil dynamics for fresh impetus.  

Having faced rejection once again near 75.83 region, USD/INR has entered a bullish consolidation phase, as the bulls gather pace for a test of the 76 handle amid a broadly firmer US dollar.

The tepid risk tone, in light of uncertainty over the coronavirus situation amid easing of the lockdown measures and renewed US-China spat, props up the haven demand for the greenback across its main competitors. The US dollar index traded with small gains in Asia, near the 99.80 region.

The recent cautious trading can be also attributed to the nervousness ahead of the US private sector ADP jobs report, usually a precursor to the all-important Non-Farm Payrolls (NFP). Meanwhile, the ongoing oil-price recovery undermines the Indian rupee, keeping the upbeat sentiment intact around the cross.

Oil prices have staged a solid comeback from historic lows amid hopes of oil demand pick-up, as major global economies open-up from the virus-induced lockdowns. The US oil rallied hard on Tuesday and topped $25 mark, the highest level in three weeks. Note that India is an oil-importing nation and firmer oil prices impact its balance of payments equation.

Looking ahead, USD/INR buyers are likely to face a stiff hurdle at 76.11 (20-DMA) should it surpass the 76 level. The 5-DMA at 75.59 will likely offer immediate support, below which the 50-DMA support of 75.27 will come into play.

USD/INR additional technical levels