USDINR retreated from its All time high on last friday after RBI has decided to reduce the fixed reverse repo rate under liquidity adjustment facility (LAF) by 25 basis points thus discouraging banks from keeping their surplus funds with it.
RBI also ensured liquidity for small non-banking financial companies (NBFCs)
Last friday USDINR Futures formed value area lower compared to thursdays trading sesssion. Mid-Day drop is bought back around the intermediate support zone 76.40-76.50 and remains as the key support zone for the upcoming trading session. And the Previous all time high is currently acting as a support zone.
USDINR Hourly Charts
However if price breaking the zone 76.40-76.50 can bring the short term downside target to 76 and 75.70 levels. Sometimes a break below downside is much needed for more upside targets.
But do I think the upside in USDINR is over?
Not yet. We are not out this ongoing currency crisis. If any break on the downside is limited.