FUNDAMENTALOVERVIEWUSD:The US dollar came under renewed pressure yesterday on heightened hopes fora US-Iran deal. The latest developments have certainly been more positive with Qatarimediation reportedly having produced a mutual understanding on Iran's frozenfinancial assets and Trump’s retreating on the nuclear material question. In fact, having previously insisted that Iran's enriched uranium be shippedto the United States, Trump said on Truth Social that destruction in placeunder IAEA supervision, or transfer to a third country, would be acceptable. What’s more important for traders is the reopening of the Strait of Hormuz.We are approaching the June FOMC meeting, and after Fed’s Waller speech onFriday, it’s now almost assured that the Fed is going to abandon the easingbias. If nothing changes before then, we might have a more hawkish thanexpected decision which is going to reverberate across the markets.Therefore, in the short-term, a resolution and the reopening of the Straitwill likely weigh on the greenback on falling oil prices and increased rate cutbets. But if the Strait remains closed for longer and oil prices stay elevated,the risk of the Fed being forced to hike anyway increases.INR:On the INR side, theoptimism about a US-Iran deal since the final part of last week has extendedand provided support to the Rupee as oil prices fell to monthly lows. In the short-term,the Rupee has been closely correlated with oil prices, so positive developmentson the US-Iran front should keep giving the INR a boost. Conversely, extendedstalemate or further escalations will likely keep weighing on the currency andpush it into new record lows. 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 the USD/INR pair into new highs. USDINR TECHNICALANALYSIS – DAILY TIMEFRAMEOn the dailychart, we can see that USDINR is approaching the trendline around the 95.50 level. If the pricegets there, we can expect the buyers to step in with a defined risk below thetrendline to position for a rally into new record highs. The sellers, on theother hand, will want to see the price breaking lower to increase the bearishbets into the 94.00 handle next.USDINR TECHNICALANALYSIS – 4 HOUR TIMEFRAMEOn the 4 hourchart, we have a minor downward trendline defining the current bearish momentum.The sellers will likely continue to lean on the trendline with a defined risk aboveit to keep pushing into new lower. The buyers, on the other hand, will want tosee the price breaking higher to pile in for a rally into new all-time highs.USDINR TECHNICALANALYSIS – 1 HOUR TIMEFRAMEOn the 1 hourchart, there’s not much we can add here. The buyers will look for longopportunities around the major trendline or on the break above the minordownward trendline. The sellers, on the other hand, will look for shortopportunities around the minor downward trendline or on the break below themajor trendline.UPCOMING CATALYSTSToday, we have the USConsumer Confidence report. On Thursday, we get the latest US Jobless Claimsfigures and the US PCE price index. This article was written by Giuseppe Dellamotta at investinglive.com.