USD/INR Price Analysis: Rupee extends consolidation despite broad US Dollar weakness

• USD/INR consolidation continues as pair struggles to break key resistance at 83.00 level.
• Indian Rupee lacks momentum despite strong economic fundamentals.
• Higher lows indicate a potential breakout for USD/INR.

USD/INR has been in a consolidation phase since October 2022, with the pair ranging between 81.00 and 83.00 levels. Despite four attempts on a daily timeframe, the pair has failed to break through the key psychological resistance of 83.00. Although India's strong economic fundamentals make it an attractive choice for investors seeking the next growth story, the Indian Rupee is lacking momentum.

Currently hovering around 82.21, USD/INR is capped by both the 21-Day Moving Average (DMA) and 51-DMA, which are both slightly above the 82.21 mark.

If the pair surpasses both DMAs, USD/INR will re-test the 83.00 mark for the fifth time. On the other hand, the first support is seen at the psychological 82.00 mark, which is just below the previous week's low. A decisive break below this level could send the pair towards the March low of around 81.60, followed by the yearly low at the 81.00 level. The last line of support is placed at 80.42, a level where resistance turned into support.

The pair is gradually moving upwards by forming higher lows, and strong bullish momentum in the US Dollar could potentially propel the pair to break the critical 83.00 mark.

The Relative Strength Index (RSI) signals a somewhat neutral midpoint, suggesting the pair could move either up or down. 

The US economic calendar will feature the Personal Consumption Expenditure (PCE) later this week, and the pair is likely to take cues from that release.

USD/INR: Daily chart