USDINR Holds Below Resistance as RBI Action Slows Rupee Slide

Key Moments

USDINR is consolidating beneath a key resistance area near 90.40 while the broader uptrend remains intact.
Recent intervention by the Reserve Bank of India helped halt the latest wave of selling in the Indian Rupee.
Traders are focusing on technical breakout levels in the short term to guide positioning in USDINR.

Fundamental Overview

US Dollar (USD)

The latest US CPI release came in weaker than expected across all components. Despite the softer inflation data, market participants reacted cautiously, similar to the response following the recent NFP report. The dollar initially declined after the CPI numbers but later recovered the move and ended up stronger against most peers.

Alongside CPI, US Jobless Claims data also arrived, showing resilience in the labor market. Initial Claims stayed close to the low levels seen in recent years, while Continuing Claims fell to their lowest reading since May.

The upcoming NFP report is not expected to be affected by shutdown-related distortions, which should provide a clearer indication of underlying labor market conditions. For now, the overall stance on the greenback can be described as broadly neutral with a slight bias to the downside.

Indian Rupee (INR)

The Reserve Bank of India intervened in the market this week to curb the latest downturn in the Indian Rupee. The previous intervention took place in October, but as is often the case when underlying fundamentals remain unfavorable, the INR eventually slipped to fresh lows afterward.

Looking ahead, the Rupee is still expected to face weakness over the coming months. However, in the near term, market participants are likely to wait for decisive technical signals before re-establishing or adding to USDINR long positions.

Indian rupee jumps 1.1% to 89.27 after gains driven by the interbank order-matching system. #USDINR pic.twitter.com/XV22MoJA4V
— BigBreakingWire (@BigBreakingWire) December 19, 2025

USDINR Technical Analysis – Multi-Timeframe View

Timeframe	Key Levels / Zones	Bias and Market Behavior
Daily	Rising channel; lower bound near 89.00; record highs on the upside	Price pulled back from the top of the rising channel after RBI intervention; sellers eye the channel’s lower boundary, while buyers defend key support areas targeting new highs.
4 hour	Resistance around 90.40; support area near 89.70	Sellers are repeatedly entering near 90.40 with risk defined above that level, aiming for 89.70; buyers need a break above 90.40 to seek a continuation into fresh all-time highs.
1 hour	Short-term resistance at 90.40 and nearby intraday lows	Sellers are expected to keep fading rallies into resistance for lower targets, while buyers watch for a confirmed breakout higher to pursue a new record high.

Daily Chart: Pullback Within a Rising Channel

On the daily timeframe, USDINR has retreated from the upper boundary of its rising channel following the RBI’s recent intervention. This decline represents a counter-move within a broader uptrend. For sellers, the logical downside objective remains the lower edge of the channel, which is positioned around the 89.00 level. To reach that area, they must maintain pressure and hold the pair below key intermediate zones.

Buyers, in contrast, continue to emerge near important support levels within the channel, seeking to keep the broader bullish structure intact and ultimately aim for new record highs.

4-Hour Chart: Key Resistance at 90.40

On the 4-hour chart, a prominent resistance region has formed around 90.40. Sellers have been consistently defending this zone, using it as an entry area with risk contained above the level and targeting a move toward 89.70 as the next downside objective.

For buyers, a sustained break above 90.40 would be the trigger to increase long exposure, with the goal of extending the rally into uncharted territory and printing new all-time highs.

1-Hour Chart: Short-Term Battle Around Resistance

On the 1-hour timeframe, the price action largely mirrors the dynamics seen on the 4-hour chart. Sellers are likely to continue initiating positions near the established resistance area, aiming for new short-term lows if the level holds. Meanwhile, buyers are watching closely for a confirmed upside breakout through resistance to position for a rally toward another record high.