USD/INR Technical Analysis: Wednesday's close pivotal
USD/INR created an inside day candlestick pattern on Monday, signaling indecision in the market place. The candlestick pattern has weakened the immediate bullish view put forward by Friday's falling channel breakout.
A close above 71.81 (inside day's high) would imply the indecision or consolidation has ended with a bullish breakout. Put simply, it would signal a continuation of the rally from the Nov. 28 low of 71.2490 and open the doors for a convincing move above 72.00.
USD/INR seesaws around 21-day EMA amid trade/political fears
The USD/INR pair’s initial declines to 21-day Exponential Moving Average (EMA) fails to last long as the quote recovers to 71.62 amid the initial hours of the Indian trading session on Tuesday.
Monday’s broad US dollar’s (USD) weakness and traders’ pricing for the Reserve Bank of India’s (RBI) rate cut seem to exert downside pressure on the pair. On the contrary, the United States (US) driven challenges to the global trade mechanism, via threats to tariffs on the European Union (EU), China and South American nations, keep the prices under check.
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