USD/INR Technical Analysis: Drop to two-month rising trendline likely
|- The USD/INR charted a bearish outside-day last Thursday, signaling a temporary bullish exhaustion. The negative follow-through on Friday confirmed a bearish reversal.
- The relative strength index (RSI) charted a lower high in response to higher high in the USD/INR, meaning the indicator has diverged in favor of the bears.
- The MACD produced a bearish crossover on Friday and is now signaling that the bearish momentum is about to gather pace.
- As a result, the gains in the USD/INR seen today could be short-lived. The pair could drop to support of the rising trendline from the August low, currently seen at 73.38. A daily close below that level would allow a deeper pullback to 72.00-71.52 (Sept. 14 low).
Daily Chart
Spot Rate: 73.88
Daily High: 73.95
Daily Low: 73.625
Trend: Bearish
R1: 74.00 (psychological level)
R2: 74.24 (resistance of Oct. 5 high as per the hourly chart)
R3: 74.48 (Oct. 11 high)
Support
S1: 73.55 (200-hour exponential moving average)
S2: 73.38 (rising trendline support)
S3: 73.00 (psychological support)
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