- USD/INR corrects, but the downside seems limited.
- 200-DMA is the level to beat for the bulls.
- Coronavirus statistics, USD dynamics in focus.
USD/INR corrects from two-month highs of 74.27, still holding above the 74 level, as the US dollar consolidates Wednesday’s rally to weekly highs.
The bulls are taking a breather after the solid upsurge, fuelled by relentless buying seen in the US dollar across the board, as investors flocked to the safe-haven amid broad risk-aversion.
The rapid rise in coronavirus cases globally and partial lockdowns imposed in German and France thwarted the prospects of economic recovery worldwide and weighed on the risk sentiment.
On the INR-side of the story, the sell-off in oil prices helped limit the losses in the Indian rupee. Both crude benchmarks slumped to multi-week lows after tighter virus-led lockdowns stoked demand concerns.
Attention now turns towards the US weekly Jobless Claims and Q3 Preliminary GDP for fresh trading incentives. Meanwhile, the coronavirus stats globally and from India will be closely eyed for any impact on the broad market sentiment.
USD/INR technical levels
The bears now eye the 5-DMA at 73.93, below which powerful cushion at 73.50 (20 & 50-DMA) will get tested. Alternatively, two-month highs of 74.27 will be back on the buyers’ radars. Acceptance above the latter could expose the 200-DMA at 74.40.
USD/INR additional levels
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