USD/INR charts three-day losing streak, nears 50-day MA support
- USD/INR is operating on slippery grounds, as indicated by the three-day losing streak.
- The upside in Rupee looks limited, courtesy of the SIno-US political tensions and the upbeat US data.

USD/INR fell 0.31% on Wednesday, confirming a three-day losing streak, the longest since Oct. 23.
The Rupee extended Tuesday's rally amid trade optimism and weakness in crude oil – Brent's front-month contract fell more than 1.6% to $62.48 per barrel.
The Indian unit may rise further on Thursday, according to technical studies: USD/INR's daily chart shows consecutive bearish Marubozu candles, descending 5- and 10-day moving averages and a below-50 reading on the relative strength index.
The losses, however, could be restricted near the 50-day moving average support at 71.17, as analysts are worried that another rate cut by the Reserve Bank of India may not have any positive impact on the economy. The central bank's rate decision is due on Dec. 5.
In fact, a strong bounce from the 50-day moving average cannot be ruled out, as renewed political tensions between the US and China have boosted demand for the haven assets. President Trump on Wednesday signed the Hong Kong Democracy bill, triggering fears of a fall out on the trade front.
The anti-risk Japanese Yen picked up a bid in Asia and the futures on the S&P 500 dropped by more than 0.20%. Indian equities, therefore, may come under pressure, weakening the bid tone around INR.
Further, the greenback may find love due to the upbeat domestic data. The US gross domestic product (GDP) increased by 2.1% in the third quarter, driven by strong consumer spending, the official data released on Wednesday showed.
Technical levels
Author

Omkar Godbole
FXStreet Contributor
Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

















