- USD/INR struggles for clear directions after snapping three-day uptrend the previous day.
- One-month-old horizontal region, ascending trend line from May 07 limit immediate moves of Indian Rupee pair.
- Upbeat RSI (14) suggests continuation of northward grind; 200-SMA acts as the last defense of USD/INR bulls.
USD/INR treads water around 82.30 as it jostles with the one-month-old horizontal resistance area during early Wednesday.
That said, the Indian Rupee (INR) pair retreated from the stated hurdle surrounding 82.40-42 the previous day while printing the first daily loss in four.
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However, the upbeat RSI (14) line, not overbought, favors the extension of the Indian Rupee (INR) pair’s slow grind toward the north triggered earlier in May. With this, the USD/INR pair buyers are hopeful of overcoming the 82.42 resistance zone.
Following that, the 61.8% Fibonacci retracement level of the pair’s March-April downside, near 82.45 and the previous monthly high of around 82.50 may check the USD/INR bulls before directing them to the March’s high of 83.03.
Alternatively, a one-week-old ascending support line, close to 82.20 by the press time, puts a floor under the USD/INR prices for the short term.
In a case where the USD/INR breaks the 82.20 support, the 82.00 psychological magnet and the 200-SMA surrounding 81.95 could probe the pair sellers before giving them control.
To sum up, USD/INR is expected to keep the latest upside move but the road toward the north is long and bumpy.
USD/INR: Four-hour chart
Trend: Gradual upside expected
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