USD/INR Technical Analysis: Consolidates above 38.2% Fibo., 71.65-60 pivotal support
|- The USD/INR pair has been struggling for a firm direction.
- Break below 71.65-60 support to accelerate the recent slide.
- Bulls await a sustained strength beyond the 72.00 handle.
The USD/INR pair continued with its struggle to build on its attempted moves beyond the 72.00 handle and remained confined well within a three-day-old narrow trading band.
Currently hovering around 200-hour SMA, the 38.2% Fibonacci level of the 70.53-72.37 move up – the 0.7165-60 region – might continue to act as immediate support for the pair.
Sustained weakness below the mentioned support might be seen as a key trigger for bearish traders and accelerate the slide further towards 61.8% Fibo. support near the 71.20 region.
Some follow-through selling has the potential to drag the pair further towards testing sub-71.00 levels and also set the stage for an extension of the near-term depreciating move.
On the flip side, bulls are likely to wait for a sustained strength beyond the 72.00 mark, above which the pair could aim back towards monthly tops around the 72.35-40 region.
The momentum could further get extended towards September monthly peak, around the 72.65 region, which if cleared will negate any near-term bearish bias for the pair.
Meanwhile, neutral technical indicators on hourly charts haven't been supportive of any firm direction and thus, warrant some cautions before placing aggressive bets.
USD/INR 1-hourly chart
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