USD/INR Technical Analysis: Five-month rising trendline breached
USD/INR has breached a five-month uptrend line and could bring in deeper support levels into play with the daily chart indicators reporting bearish conditions. The pair closed at 70.90 on Monday, violating the trendline connecting July 11 and Nov. 1 lows and dropped further to 70.77 on Tuesday, cementing the breakdown.
The 14-day relative strength index is hovering in bearish territory below 50 and the MACD histogram is printing deeper bars below the zero line – a sign of strengthening downside momentum.
USD/INR seesaws around five-week low, all eyes on Fed decision
With the USD/INR pair sellers catching a breath around five weeks’ low, the quote seesaws near 70.84 amid initial Indian market trading on Wednesday.
The pair has recently been on the fall as the Reserve Bank of India’s (RBI) surprise hold pushed back calls of further rate cuts from the Asian central bank. Market reports of increased corporate inflows should have contributed to the pair’s declines. Even so, doubts surrounding the Indian economic growth, fiscal slippages and inflation numbers prevail.
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