Why is the euro to Indian rupee rate flat today? RBI intervention and key support levels to watch

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Euro vs Indian Rupee gains 0.54% today

Highlights

The Reserve Bank of India entered the forex market via state banks to supply dollars and stabilize the rupee against external pressures.
RBI's intervention aims to moderate volatility from a stronger dollar and fluctuating oil prices impacting the EUR/INR pair.
EUR/INR shows bullish short- and medium-term momentum with price at ₹108.628 and a projected 2–3 day range of ₹108.0849 to ₹109.1711.

RBI liquidity injections buffer rupee as dollar strength pressures market

The Reserve Bank of India has intervened to stabilize the rupee amid pressure from a strengthening dollar and volatile oil prices. According to Economictimes, traders reported that state-run banks were active in offering dollars, a move widely understood to be on behalf of the RBI. This intervention provides additional dollar liquidity, helping to offset external headwinds and moderating the supply-demand balance in the Euro vs Indian Rupee market.

Bullish signals persist as price holds above short- and medium-term averages

Technical signals for EUR/INR show the price trading above its MA-20 and MA-50, while remaining below the MA-200 on the daily chart. The Ichimoku Kijun offers immediate support at ₹108.2566. Momentum readings remain predominantly positive: MACD, ADX, Stochastic RSI, RSI, and Bull/Bear Power indicate bullish intraday dynamics, with CCI confirming an overbought condition. Awesome Oscillator is neutral and does not reinforce the prevailing trend, while intraday action has been characterized by a slight negative gap at the open and buying momentum persisting into the close.

Upside bias dominates as volatility band contains risk

Over the next two to three trading days, EUR/INR is likely to trade in a volatility band between ₹108.0849 and ₹109.1711. There is a very high probability of continued gains within this range, while the chance of a decline remains low. Should the price break above resistance, further upside toward the range’s upper boundary is expected; conversely, a drop below support may trigger corrective action toward the lower end of the band.

Anton Kharitonov, expert at Traders Union, notes that RBI intervention is moderating euro strength against the rupee, while technical momentum remains bullish within the current range. He believes overbought conditions and presence below the long-term MA-200 keep upside limited despite positive short-term signals. Kharitonov remains cautious and sees risk of pullback if support is lost. "Until EUR/INR breaks convincingly above ₹109.1711, I do not see a compelling case for aggressive upside trades."

Previously it was reported that Euro vs Indian Rupee faced persistent bearish momentum amid sustained technical resistance. The current analysis signals a shift toward bullish intraday dynamics, and traders should monitor the evolving volatility band as a break above the upper boundary could indicate a further short-term advance.

Source of Data: EUR Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.