USD/INR Technical Analysis

The US dollar has been losing strength against the Indian rupee in the last few days. The downward movement has already accumulated almost 3% since April 20 and is now trading around 73.4030. In the last 2 days the market has been sideways waiting for the Consumer Price Index data from both US and India, scheduled for later today. Inflation in India may be higher than expected due to the huge wave of COVID-19 infections that have been in place in the country in the last weeks. If the India CPI reading is higher-than-expected, which could pose a bigger inflation threat, this could be negative for the INR and cause the US Dollar to resume the previous upward movement. From a technical point of view, if the price breaks above the 74.60, it could rise up until 75.00 as a first target and 76.00 as a final one.