FUNDAMENTALOVERVIEWUSD:The USdollar strengthened yesterday after Iran rejected the proposed ceasefire andoutlined its own conditions that included closure of all US bases in the Gulf,reparations for the attacks, lifting of all sanctions and allowing Iran toretain its missile program without restrictions. Theseconditions are of course unacceptable for the US, so we are now in a deadlock. Fornow, the US dollar is likely to remain supported until there is an officialde-escalation.INR:The Indian rupee gotsome reprieve on Monday following Trump’s announcement of a five-day ceasefire,but the relief didn’t last long as mixed messages and pushbacks from theIranian side led to a consolidation.Traders are nowwondering whether this was just the usual Trump’s strategy to jawbone themarkets while the US prepares for a ground invasion. If that happens, we willlikely see the USDINR pair skyrocketing again. On the other hand, if Trumpdecides to pull back militarily and end the hostilities, we should get ameaningful correction. 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 technical levelsto keep pushing into new highs.USDINR TECHNICALANALYSIS – DAILY TIMEFRAMEOn the dailychart, we can see that USDINR broke out of the channel and surged above the 94.00 handle as theUS-Iran war kept weighing on the rupee. If we get a pullback into the brokentop trendline, we can expect the buyers to step in with a defined risk below itto keep pushing into new highs. The sellers, on the other hand, will want tosee the price falling back inside the channel to position for a drop into the bottomtrendline. USDINR TECHNICALANALYSIS – 4 HOUR TIMEFRAMEOn the 4 hourchart, we have an upward trendline defining the bullish momentum. This addsconfluence to the broken channel and should give the buyers more conviction tostep in around the 93.50 level to keep targeting new highs. The sellers, on theother hand, will look for a break below the trendline to pile in for a dropback into the lower bound of the channel. USDINR TECHNICALANALYSIS – 1 HOUR TIMEFRAMEOn the 1 hourchart, there’s not much we can add here but if we get a break above the recenthighs around the 94.60 level, we can expect the buyers to increase the bullishbets into new highs. The sellers, on the other hand, will likely step in aroundthe highs to target a pullback into the 93.50 level.UPCOMING CATALYSTSToday we get the latest US Jobless Claims figures. This article was written by Giuseppe Dellamotta at investinglive.com.