FUNDAMENTALOVERVIEWUSD:The USdollar has come under renewed pressure despite the lack of progress in theUS-Iran negotiations and the Strait of Hormuz closure. What has been weighingon the greenback to start the week was the news saying that Iran proposed toreopen the Strait of Hormuz if the US blockade is lifted and then hold nucleartalks later. This constantpush towards a diplomatic resolution instead of another full-fledged war hasbeen supporting the risk sentiment on expectations that a deal would be reachedeventually. On Wednesday,we have the FOMC policy decision and although the Fed is expected to keepeverything unchanged amid the US-Iran uncertainty, there’s a risk of a morehawkish leaning due to resilient US data and the elevated energy prices. A neutralFed shouldn’t bring much volatility, but a more hawkish one could give the USdollar a significant boost given the recent selloff.INR:On the INR side, theUS-Iran stalemate led to another selloff with the Indian Rupee erasing all thegains since the start of the month. The currency will likely remain underpressure as long as the situation in the Strait of Hormuz remains unresolved. In the bigpicture, the Indian Rupee remains on a bearish structural trend against the US dollar,so the dip-buyers will likely look for opportunities around strong technicallevels to keep pushing into new highs. USDINR TECHNICALANALYSIS – DAILY TIMEFRAMEOn the dailychart, we can see that USDINR rose back above the upper bound of the channel opening the door fornew highs. The buyers piled in on the break targeting a new record high, whilethe sellers will now need to wait for the price to fall back below the upper boundto regain some control and target new lows.USDINR TECHNICALANALYSIS – 4 HOUR TIMEFRAMEOn the 4 hourchart, we can see the break of the resistance around 94.00 handle that shouldnow act as support. If we get a pullback, we can expect the buyers to step in aroundthe support with a defined risk below it to keep pushing into new highs. Thesellers, on the other hand, will look for a break to pile in for a drop intothe 92.00 handle next.USDINR TECHNICALANALYSIS – 1 HOUR TIMEFRAMEOn the 1 hourchart, we can see the price broke above the minor counter-trendline today. Moreaggressive buyers might pile in around these levels with a defined risk belowthe most recent swing low to keep pushing into new highs, although the risk toreward setup would be better around the support. UPCOMING CATALYSTSTomorrow we get the US Consumer Confidence report. On Wednesday, we have theFOMC policy decision. On Thursday, we get the US Q1 GDP, the US Employment CostIndex and the latest US Jobless Claims figures. On Friday, we conclude the weekwith the US ISM Manufacturing PMI. This article was written by Giuseppe Dellamotta at investinglive.com.