The US dollar rose a bit in the Friday session against the Indian rupee, as the trend remains solid, albeit sluggish.
USD/INR
The US dollar rallied a bit during the trading session on Friday against the Indian rupee, but keep in mind this pair is more likely than not going to continue to face a lot of grinding action. That's typically the scenario you see in this pair mainly due to the fact that the Central Bank in India has a very heavy thumb on the scales. They do not like the idea of the rupee losing too much strength right away and are rather defensive.
That being said, you can clearly see that the market has been trending higher for quite some time and there is an argument to be made about the idea of buying and holding, but you also have to keep in mind that you will have to be very patient. This is because the interest rate differential does favor India, but there are a lot of concerns about global growth. Global growth of course is heavily influencing what people anticipate as far as investment is concerned in India.
Key Support and Resistance Levels
The 91.5 level is an area where a lot of people will be watching closely and if we can break above there then the 93 level could be targeted over the longer term after breaking through the 92.25 level, an area that has been important.
If we were to break down from here, the 50-day EMA currently sits at 90.62 followed by the 90-rupee level being major support. All things being equal, I do like this pair to the upside, but I also recognize that you will have to be very patient and recognize that the swap is working against you ever so slightly.