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USD/INR

The FED gave what the traders could define as a dovish hike. The FED raised the rates by 25 BPS, but the commentary tone mellowed a bit. In his speech, Jerome Powell mentioned credit tightening, or credit control, which is said to have the same effect as policy tightening on inflation. The FED’s message was taken as “Our JOB HERE IS DONE” which meant that the FED could be more dependent on the Credit tightening by the banks to contain the inflation which hinted towards a possible peak in the interest rates. This led to a gap down in the USDINR pair. After a gap down open the pair continued to fall and tested the low of 82.10. The daily stochastics can be seen forming a bearish hinge near the over bought level, hinting towards a possible exhaustion in the bullish momentum. The buying near the 82.10 mark was very strong, this could mean that in the sessions to come we might see the pair find support near the 82.10-82.00 mark. On the upside the immediate resistance can be seen around the 82.50-82.70. From a broader point of view, we might see the pair consolidate between 82.00-82.70

EUR/INR

The interest rate differential between the ECB and the FED is driving the EURO higher. The FED sounded hawkish, while the ECB said that their focus is on getting the inflation under control, they also mentioned that there may be further rate hikes if needed, in the meetings to come. The EURINR pair opened on a strong note but the buying momentum could not sustain, and the pair gave up and moved lower towards the end of the session. The momentum indicators, tell that we could see the bullish momentum continues, in the sessions to come. The EURINR was slightly shy of printing a high of 90.00, so in the sessions to come we might see the pair find resistance near the 89.80-90.00. On the downside we might see the pair find support near the 89.30- 89.00

JPY/INR

The tanking US bond yields after the FED commentary, helped the Yen gain against the Dollar, the USDJPY pair tested a low of 130.50. The JPYINR opened on a strong note but failed to sustain near the highs, courtesy the tanking USDINR pair. From the price action point of view the pair faced rejection near the 63.30 zone for the 3 rd session in a row, this makes the 63.30 level a very crucial level to watch out for on the upside. The momentum indicators formed a bearish hinge near the overbought level on the daily chart, indicating a possible exhaustion in the bullish momentum. Technically, the JPYINR pair has been facing strong rejection near the 63.00- 63.30 zone, so in the sessions to come we might see this level act as a resistance. On the downside we might see the support come in near the 62.50-62.30 zone.

GBP/INR

A major shock for the Pound came in because of the hotter than expected inflation. The downward trending inflation of the previous 3 months was completely taken out when the headline reading come in at a staggering 10.4%. The next key event for the Pound will be the BoE rate decision, though the traders are pricing in a 25 BPS hike a, hawkish stance will be more than welcome and could push the pound higher against the US Dollar. The softer dollar helped the helped the GBPINR pair open on a strong note. But the gains were short lived and the pair made a move towards the 101.00 level towards the end of the session. The stochastic indicator on the daily time frame seems to be forming a bearish hinge near the over bought zone, indicating exhaustion in the bullish momentum. The pair could not hold the opening gains and faced string selling near the session high of 101.60. In the sessions to come, the pair might find resistance near the 101.60 and on the downside the pair might find support near the 100.80- 100.60 zone

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