USDINR is trading in a broader level sideways mode in the band of 70.3-72 for the last 3 trading months. November month starts with a trending mode with increasing trend strength on the higher timeframe. Weekly ADX got into the incremental mode with value surpassing above 15.72 levels indicating a possible medium-term uptrend.
In the last week session USDINR maintained its 4th consecutive lower highs with a failling smoother ADX value indicating potential divergence between the price and the ADX value which indicates the return of strength in USDINR short term trend.
Immediate support zone comes arounf 70.65-70.75 levels. Short term volatility in USDINR is subdued for the last 2 trading months and expect to rise moderately in the upcoming trading session onwards.
Recent Moody’s India rating downgrade from ‘stable’ to ‘negative’ and US-China trade deal new flows could be a catalyst factor to bring increased volatility in near term. 72.3 and 72.5 are the medium term levels to watch out on the higherside.