USDINR: (Intraday bias- Upward drift.
Support Feb futures – 83.05 and 82.95
Resistance- 83.20 and 83.25)
A robust US CPI inflation figure exceeded expectations, driving US yields upwards and propelling USDINR towards 83.10 at the market open today. The pair is anticipated to encounter formidable resistance around the 83.16/20 levels. Hence, traders with long positions may consider booking profits near this resistance level. For short sellers seeking to initiate positions, it is advisable to set a stop above 83.20 on a spot basis. Should prices breach and sustain beyond 83.20, the next target levels could extend to 83.40/50. Furthermore, with the US Dollar Index having recently established a significant base near the 100/101.00 zone, it is now positioned for further upside momentum. This, combined with traders reducing their expectations for rate cuts from 6/7 to nearly 3 cuts, aligns with the guidance provided by the Federal Reserve through their dot plot.
