FUNDAMENTALOVERVIEWUSD:The USDollar weakened across the board yesterday following the softUS core inflation data but the initial moves were eventually faded and thegreenback gained. It’s hard to explain such a price action but we got alsorenewed Trump’s threats against Iran following the US CPI report which weighedon the risk sentiment and could have been the reason for the comeback.In termsof market pricing, traders firmed up bets on Fed rate cuts with the totaleasing by year-end increasing to 54 bps from 52 bps before the CPI release. Fedmembers continue to support the current patient and data-dependent stance. Theoutlook for the USD remains neutral/bearish for now.Today, the focus will be on a potential US Supreme Court decision on Trump's tariffs. If tariffs get struck down, we might see general risk on sentiment as initial reaction and that could weigh on the US Dollar in the short-term, while also giving the Indian Rupee a boost. On the other hand, if tariffs are kept in place, it shouldn't change much given that the market got already used to tariffs. INR:The Indian Rupee remainson a bearish structural trend against the US Dollar, but the momentum has beenless aggressive recently compared to last year. The suspected RBI’sinterventions might be capping the upside.The latest India’sannual inflation rate increased to 1.33% in December compared to 0.71% inNovember. This is still way below the RBI’s 4% target but closer to the bottomof their tolerance band at 2%. Traders don’t expect the RBI to deliver anotherrate cut at the upcoming meeting in February. On the tradefront, traders are watching for potential tariff hikes on India after Trumpthreatened to impose 25% tariffs on any country doing business with Iran as theUS President continues to put pressure on the regime. India has been among thelargest Iran’s trade partners in recent years, so traders are watching for therisk of another escalation.USDINR TECHNICALANALYSIS – DAILY TIMEFRAMEOn the dailychart, we can see that USDINR is slowly approaching the key resistance aroundthe 90.40 level. That’s where we can expect the sellers to step in with adefined risk above the resistance to position for drop back into the lowerbound of the channel. The buyers, on the other hand, will want to see the pricebreaking higher to increase the bullish bets into the upper bound of thechannel around the 92.00 handle.USDINR TECHNICALANALYSIS – 4 HOUR TIMEFRAMEOn the 4 hourchart, we can see more clearly the recent choppy price action with a bounce nearthe 89.70 support as dip-buyers piled in quickly after the suspected RBI’sintervention. We might now get stuck in this range between the 89.70 supportand the 90.40 resistance. The market participants will continue to play therange until we get a breakout on either side.USDINR TECHNICALANALYSIS – 1 HOUR TIMEFRAMEOn the 1 hourchart, there’s not much we can add here as the buyers will look for dip-buyingopportunities around the 89.70 support or pile in on a breakout, while thesellers will continue to step in around the resistance or wait for a downsidebreakout.UPCOMING CATALYSTSToday we get the November US Retail Sales and US PPI reports, so it’sgoing to be old data. The market will likely focus on the potential US SupremeCourt decision on Trump’s tariffs. Tomorrow, we get the latest US JoblessClaims figures. This article was written by Giuseppe Dellamotta at investinglive.com.