USD/INR Price Analysis: Recovers firmly from 82.40 as yields dampen market mood

• USD/INR has displayed a sheer recovery to near 82.60 as hawkish Fed bets have fueled US yields.
• A formation of an Ascending Triangle indicates volatility contraction with a bullish bias.
• The 50-period EMA at 82.30 is likely to provide a cushion to the US Dollar bulls.

The USD/INR pair has picked strength after gauging significant buying interest around 82.35 in the Asian session. The asset has scaled sharply to 82.60 and is aiming to extend gains further as US Treasury yields are skyrocketing on expectations that the Federal Reserve (Fed) will push borrowing rates above 5% by summer.

The US Dollar Index (DXY) is gathering strength to deliver a break above the immediate resistance of 104.30. The 10-year US Treasury yields have printed a fresh three-month high at 4.03%. Meanwhile, S&P500 futures have extended their losses further, portraying a risk-aversion theme.

USD/INR is forming an Ascending Triangle chart pattern on a daily scale that indicates volatility contraction with a bullish bias. The upward-sloping trendline of the chart pattern is placed from November 14 low at 80.48 while the horizontal resistance is plotted from October 19 high at 83.10.

The 50-period Exponential Moving Average (EMA) at 82.30 is likely to provide a cushion to the US Dollar bulls.

Meanwhile, the Relative Strength Index (RSI) (14) has slipped into the 40.00-60.00 range from the bullish range of 60.00-80.00, indicating a lackluster performance ahead.

 A decisive break above March 01 high at around 82.62 will drive the asset toward February 28 high around 82.75 followed by February 27 high around 82.95.

On the flip side, a confident break below March 1 low at 82.34 will drag the major toward the round-level support of 82.00 and January 17 high at 81.89.

USD/INR daily chart