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* The Indian Rupee is expected to open slightly higher following the weaker opening of the greenback after Monday’s holiday. The stronger yuan could also support the local unit along with Asian currencies. Implied opening from forwards suggests the spotmay starttrading around 82.61. Spot USDINR up 0.1% at 82.63 on Monday following month-end dollar demand and weaker Asian currencies. Technically, the rupee could drop further against the dollar after some consolidation. It ended 0.5% above both the 50-day and the 100- day averages. It hassupport at 82.30 and resistance at 82.90. Dollar Spot Index was little changed as a tentative deal to avoid a US debt default failed to spur fresh bets in thin holiday trading. Asian equities traded mixed with Stocks in Japan fell, Australia’s benchmark was little changed and equities in South Korea advanced. Traders will eye on today’s debt-pact hearing by the US House rules committee, a day before the whole body votes on it. The White House and GOP congressional leaders stepped up lobbying efforts for passage. The ability of Joe Biden and Kevin McCarthy to compromise should help their political standing. The White House says the caps will cut spending by about $1 trillion over a decade, while the GOP arguesthe reduction is double that. In commodities, oil rose and gold remained near its lowest level since mid-March as demand waned for haven assets following the US debt deal. The risk-on tone across markets helped offsetthe impact of easing supply-side issuesfor crude oil.

USDINR

Technical Observations:

USDINR June fut. has formed a doji candlestick pattern indicating indecisiveness. The pair has support at 82.57, the 21 DEMA. It has a downward-slopping trend line resistance at 83.20. Momentum Oscillator, RSI of 14 days is oscillating above 50 and weakening on the daily chart. MACD has been placed above a zero line but could give a negative crossover. Long build-up has been seen as price along with open interest rises. We turned bearish on USDINR June futures with downside support at 81.45, keeping stop loss above 82.50

USDINR June Futures Daily Chart

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