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USD/INR consolidates gains to 71.20 amid a lack of major drivers

  • USD/INR struggles for direction after rising the previous day.
  • Chinese headlines keep the risk tone heavy but the year-end trading lull limits the market’s reaction.
  • Second-tier US data, trade/political headlines can entertain short-term traders.

USD/INR seesaws around 71.20 as the Indian markets open for trading on Tuesday. The pair earlier benefited from the downbeat US data and doubts over phase-one optimism. Even so, the recent headlines from China fail to register major moves amid a year-end holiday mood.

China’s Global Times spread various worrisome headlines that doubt future trade/political relations between the US and Beijing. Among them, the latest one signaling the direct dislike for the US interference in Taiwan, Hong Kong and Xinjiang issues gain the top spot.

While the pair traders fail to offer any major reaction to the Chinese headlines, the US 10-year treasury yields fail to extend the previous day’s recovery while taking rounds to 1.92% by the press time. Also portraying the risk aversion are the stocks in Asia that are mildly negative amid thin trading conditions

It’s worth mentioning that the sharpest decline by the US Durable Goods Orders since May contributed majorly to the pair’s run-up during the previous day.

Looking forward, a lack of economic details on the calendar, except for the US Richmond Manufacturing Index for December, could keep prices range-bound. Though, any strong reaction to the recent Chinese news by the US can offer liquidity during the later part of the day.

Technical Analysis

In addition to the multiple key Simple Moving Averages (SMAs) around 71.40, a descending trend line since mid-November, around 71.60, will also limit the pair’s near-term upside. On the contrary, 71.00 can act immediate support.

Additional important levels

Overview
Today last price 71.206
Today Daily Change -0.0040
Today Daily Change % -0.01%
Today daily open 71.21
Trends
Daily SMA20 71.1774
Daily SMA50 71.2423
Daily SMA100 71.2832
Daily SMA200 70.3066
Levels
Previous Daily High 71.3055
Previous Daily Low 71.04
Previous Weekly High 71.435
Previous Weekly Low 70.67
Previous Monthly High 72.37
Previous Monthly Low 70.4975
Daily Fibonacci 38.2% 71.2041
Daily Fibonacci 61.8% 71.1414
Daily Pivot Point S1 71.0648
Daily Pivot Point S2 70.9197
Daily Pivot Point S3 70.7993
Daily Pivot Point R1 71.3303
Daily Pivot Point R2 71.4507
Daily Pivot Point R3 71.5958

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