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USD/INR

The market mood drove the US bond yields, which drove the Dollar index. The Dollar index bounced off the 101.65 zone and the headed higher above the 102 zone. The USDINR pair had been lacking momentum since the past couple of sessions. Midday the pair managed to break above the 82.22 handle and moved higher towards 82.40. If we take a closer look at the intraday charts, we can see that the pair had been forming a double bottom pattern, with the neckline near 82.22 zone. If we were to project the double bottom target from the 82.22 zone we can easily see the USDINR pair head higher towards the 82.50 handle. The RSI plotted on the daily chart can be seen heading higher towards the overbought level, indicating presence of momentum in the bullish trend. The support zone for the pair is placed near the 82.00 mark. And on the upside we might see the pair head higher towards the 82.50 level.

EUR/INR

The risk sentiment and the market mood was the major driver for the EURO, through out the session the Euro followed the dollar, mainly because there were data releases with major impact. We did have the inflation data, which showed inflation flattening and was inline with the analyst estimates. After a flattish open the pair attempted to move higher but gave up around the 90.15 zone and came down crumbling below the 90.00 handle towards the end of the session. Looking at the price action we see that the EURINR pair has been facing rejection near the 90.16- 90.20 zone since the past couple of sessions. The RSI plotted on the daily chart can be seen slightly bending lower since the past couple of sessions indicating slow yet steady exhaustion in the momentum. Going by the price action the pair seems to be facing rejection near the 90.15-90.20 zone, a level which we will closely look as a resistance level. On the downside we might see the pair head lower towards the 89.70 level.

JPY/INR

The UK CPI data release triggered a volatility spike in the US Bond yields. The short end 2 year yields moved higher towards the 4.30% mark. This put a lot of pressure on the Yen, and we saw a mid day hammering in the JPYINR pair. The Mid day hammering pushed the pair lower towards the 60.99 zone. Looking at the price action we can see that the pair managed to hold the 61.00 zone with a mild give and take for the 2 nd session. The RSI plotted on the daily chart continues to head lower towards the oversold zone, indicating increasing momentum in the down move. The moment the pair tested the 61.00 zone some buying was seen which pulled it higher towards the 61.15 level. So the 61.00 zone is expected to act as a support in the sessions to come. On the upside we might see the resistance come in near the 61.30- 61.40 zone.

GBP/INR

The analysts expected the inflation to cool off quite a bit and move out of the double digit territory. But the actual figures surprised the markets and the inflation print came in hotter that the market was anticipating. The immediate reaction of the market was a panic as the traders were trying to strike a balance between BoE opting for a tighter policy and the fear of a recession and the high inflation story continuing for longer than the market expected The GBPINR was super volatile, after the CPI data was out the pair moved haywire and initially tested a low of 101.88, and then immediately reversed to print a high of 102.37. As of now it pair is placed above all its major moving averages. The stochastics plotted on the daily chart can be seen forming a bearish hinge near the overbought level, indicating exhaustion in the momentum. In the sessions to come we might see the pair find support near the 101.90 zone. On the upside we might see the resistance come in near the 102.40-102.50 zone.

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