USD/INR Price News: Indian rupee sold-off at strong resistance, reverts to 74.00

• USD/INR stages an impressive bounce from end-September troughs.
• Renewed US dollar demand and pre-inflation profit-booking help the pair.
• USD/INR needs a sustained move above 74.00 to firm up the recovery.

USD/INR is making an impressive recovery so far this Wednesday, looking to snap a five-day downtrend, with all eyes on the US inflation figures.

The oversold conditions on the chart combined with a broad US dollar rebound have offered some relief to bulls, although the US inflation data is eagerly awaited, as it will likely set the tone for markets in the coming weeks.

Meanwhile, the persistent surge in oil price seems to finally affect the mood around the rupee traders, collaborating with the upturn in the spot. WTI jumped nearly 4% to recapture $81 mark on Tuesday, as investors remained upbeat on the economic outlook, despite the Omicron covid variant-led impact.

At the time of writing, the spot is trading close to 74.00, having refreshed four-month lows at 73.73 earlier this morning.

USD/INR: Technical outlook

The recent declines through critical daily support levels bolstered the bearish sentiment around USD/INR.

Bulls, however, managed to defend the demand area near the September 28 lows of 73.74, triggering a decent recovery over the last hours.

For the recovery to extend, the price needs to sustain above the 74.00 level on a daily closing basis.

The next relevant resistance appears at 74.13, which was the previous rising trendline support.

Further up, 200-Daily Moving Average (DMA) at 74.29 will challenge the bullish commitments.

The 14-day Relative Strength Index (RSI) has bounced off the oversold region, backing the rebound in the price.  

On the other hand, selling resurgence could see a retest of the crucial support around 73.73, below which the 73.50 psychological level will be put at risk.

USD/INR: Daily chart

USD/INR: Additional levels