A sharp decline in inflation is unsurprising, since we have been predicting since the end of last year that a greater base, a slowing economy, and lower prices for goods and services might all lead to very low inflation this year. The minutes of the most recent US central bank meeting, which were recently released, reinforced this, as they also expect both headline and core inflation to decline considerably in the coming quarters. Other central bank governors share this viewpoint.
Concerns about growth, rather than inflation, are likely to keep central bankers busy over the next 12 months. The Fed minutes indicated the possibility of a moderate recession later this year. With inflation down and the economy stagnating, how much longer can central banks ignore the need for lower interest rates? The markets have started to factor that in. As a result, the US Dollar may continue to face downward pressure, with assets that perform well when the US Dollar is weak also performing well.
USD INR Gann Angle Chart
The price continues to get rejected from the resistance level of 83 and is taking multiple supports at the 2×1 Gann angle. USDINR remains in a range between 82 and 82.50 levels. In the event that prices break below 82 and sustain, they may test 81.50 and 81.25 levels.
USD INR Plannetary Support and Resistance Line
Indain Rupee is below Venus Plannetary line heading towards 81.50/81.25
USD INR Harmonic
Price is heading towards 81.50 to complete GARTLEY pattern.