USD/INR Price Analysis: Heavy around 74.50 on RBI’s emergency rate cut
|- USD/INR extends losses from the record top.
- RBI announces 75 basis points (bps) of the interest rate cut.
- MACD teases bears, 21-day SMA offers nearby support.
Given the RBI’s emergency rate cut of 75 bps, USD/INR drops to 74.62, intraday low of 74.46, while heading into the European open on Friday.
While the Indian central bank’s rate cut recently weighed on the pair, the quote took a U-turn from record top during the previous day.
Considering the likely inversion of the MACD histogram in favor of the bears for the first time in two months, the sellers target a 21-day SMA level of 74.35.
During the pair’s further declines below 74.35, 38.2% Fibonacci retracement of the current year’s upside till March 25, near 74.15, can please the sellers.
Alternatively, buyers will have to cross a 23.6% Fibonacci retracement level of 75.00 on a daily closing basis to restore the buyers’ confidence.
USD/INR daily chart
Trend: Pullback expected
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