EUR/INR consolidates as buyer support emerges above ₹106.1408 support

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Euro vs Indian Rupee up 0.53% today

Highlights

India is considering restrictions on overseas remittances under the Liberalised Remittance Scheme due to fast rupee depreciation.
Possible regulatory action aims to limit capital outflows as pressures mount on India’s foreign exchange market.
EUR/INR trades higher on short- and medium-term momentum with projected consolidation from ₹105.983 to ₹107.0728 over the next two to three days.

Regulatory scrutiny increases as rupee depreciation spurs RBI concerns

Concerns about the Indian rupee's rapid depreciation have prompted the Reserve Bank of India to weigh possible restrictions on overseas money transfers via the Liberalised Remittance Scheme, according to Asian News Channel. This consideration reflects mounting pressure on India's foreign exchange market and raises the prospect of regulatory steps to limit capital outflows. Such actions could alter demand dynamics for the euro relative to the rupee, introducing near-term uncertainty for EUR/INR positioning.

Mixed technical signals emerge as resistance and buyer strength persist

On the technical front, EUR/INR is trading above both the MA-20 and MA-50 on the H1 chart, while remaining below the MA-200 on the daily timeframe. Immediate support is defined by the Ichimoku Kijun at ₹106.1408. The expected price band for the next sessions is set between ₹105.983 and ₹107.0728. Among indicators, MACD suggests a strong sell, but ADX and Bull/Bear Power display buyer strength. RSI and CCI both signal on the buying side, while Stoch RSI is overbought, indicating stretched short-term momentum. Awesome Oscillator remains neutral, reflecting hesitation in the current setup.

Upside bias dominates as consolidation expected within key price band

Looking ahead over the next two to three trading days, EUR/INR is expected to consolidate within the ₹105.983 to ₹107.0728 volatility band. There is a high probability of further upside in the short term, with limited chances of a downside move. A push above ₹107.0728 would signal a potential bullish breakout, while a close below the immediate support at ₹106.1408 would increase short-term downside risks for the pair.

Viktoras Karapetjanc, expert at Traders Union, sees EUR/INR supported by both positive momentum and an evolving regulatory backdrop from the Reserve Bank of India. He believes the RBI’s consideration of curbs on overseas remittances reflects macro pressure on the rupee and may boost near-term demand for the euro. With technical indicators mixed but sentiment tilting constructive, the analyst expects consolidation with a bullish bias as long as support holds. "If policymakers signal tighter controls and price stays above ₹106.1408, EUR/INR could soon test ₹107.0728 and break higher."

Earlier, analysts noted that persistent bearish pressure and negative technical signals were weighing on EUR/INR performance. However, recent regulatory considerations and technical shifts suggest the pair may face heightened short-term volatility, making a decisive move above ₹107.0728 or below ₹106.1408 crucial for the next directional trend.

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.