The USD/INR pair has shown a perpendicular run after opening towards the critical resistance of 82.00 in the Asian session. The major has witnessed a significant buying interest as investors have discounted overnight gains in the US Dollar Index (DXY) propelled amid uncertainty over the release of the United States inflation data, which will release on Wednesday.
The USD Index has shown a mild correction after a firmer recovery to near 101.50. Investors have pumped funds into the USD Index as the Federal Reserve (Fed) is expected to keep interest rates higher for a longer period as US inflation is critically stubborn.
On the Indian Rupee front, global credit rating firm Fitch has affirmed India's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BBB-' with a stable outlook. Global rating firm is confident about the resilient outlook, being an attractive destination for FDIs and FIIs.
USD/INR has attempted a confident breakout of the consolidation formed in an 81.64-81.95 range on a two-hour scale. A breakout of the Darvas Box results in wider ticks and heavy volume due to an expansion in volatility.
The 20-period Exponential Moving Average (EMA) at 81.78 is providing a cushion to the US Dollar bulls.
Meanwhile, the Relative Strength Index (RSI) (14) has climbed into the bullish range of 60.00-80.00, solidifying more upside ahead.
USD/INR can be bought at the current price for an upside toward April 26 high at 82.12. A breach of April 26 high will result in more upside toward April 21 high at 82.30.
On the contrary, a breakdown of the consolidation range below 81.60 will expose the asset to April 14 low at 81.50 followed by 26 January low at 81.36.
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