FUNDAMENTALOVERVIEWUSD:The USdollar strengthened a bit yesterday as traders turned more cautious headinginto the expected US-Iran talks in Islamabad and the ceasefire deadline. Themarkets got scared at some point as it looked like the Islamabad talks weredead on arrival with Iran refusing to participate until the US blockade in theStrait of Hormuz was lifted. Thesentiment improved though after Trump extended the ceasefire deadline(unsurprisingly) to allow more time for Tehran to put forward a proposal to endthe war. There's no deadline for this latest extension, so we might just getstuck in this new situation until the bombs start dropping again or theyfinally reach a deal. Thismorning, the sentiment is a bit more positive after Tasnim reported that Iran received 'some sign' the US is readyto break the blockade which is giving traders hope that the talks are going tohappen soon. The priceaction continues to be driven by US-Iran headlines, and this is unlikely tochange until we get an official resolution. For now, the greenback will likelyremain under pressure amid the optimistic expectations.INR:On the INR side,nothing has changed. The Indian Rupee stabilised in the past couple of weeks asthe risk-on sentiment amid the US-Iran deal optimism gave the currency areprieve. The focus remains on US-Iran negotiations as everything hinges ontheir outcome, although the renewed tensions are keeping the risk mood a bit onthe defensive. In terms of macro,the RBI held interest rates steady at 5.25% and downgraded growth forecasts dueto the US-Iran war at the last policy meeting. The central bank expectsinflation to increase in the short-term and growth to slow down. 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, but for now the Rupee could remainsupported and extend the relief rally in case the US-Iran war ends.USDINR TECHNICALANALYSIS – DAILY TIMEFRAMEOn the dailychart, we can see that USDINR pulled all the way back to the upper bound of the channel. This iswhere we can expect the buyers to step in with a defined risk above the channelto position for a drop into the lower bound of the channel. The buyers, on theother hand, will look for a breakout to pile in for a rally into a new recordhigh.USDINR TECHNICALANALYSIS – 4 HOUR TIMEFRAMEOn the 4 hourchart, we have a strong resistance around the 94.00 handle. Again, we canexpect the sellers to step in here to target the lower bound of the channel,while the buyers will look for a break to increase the bullish bets into newhighs.USDINR TECHNICALANALYSIS – 1 HOUR TIMEFRAMEOn the 1 hourchart, we have an upward trendline defining the bullish momentum. The buyerswill likely continue to lean on the trendline to keep pushing into new highs,while the sellers will look for a break to increase the bearish bets into newlows.UPCOMING CATALYSTSTomorrow we get the latest US Jobless Claims figures and the US PMIs. The focusremains on US-Iran headlines. This article was written by Giuseppe Dellamotta at investinglive.com.