USD/INR Price Analysis: Bears taking on the last defence
- USD/INR bulls stepping in at critical daily support.
- A 50% mean reversion could be on the cards for the starting sesisons of the week.
USD/INR has been a slow-burning grind to the downside for the past several days and is now testing a critical layer of support as the last defence until a break of 74 the figure.
The bulls, however, could be seen here and a retracement to test the 74.40s could be on the cards for the forthcoming sessions. The following illustrates the landscape and prospects of a significant correction on the daily chart:
USD/INR daily chart
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There is a 50% mean reversion level that has a confluence of the prior support, at least from a closing basis, located near 74.40. A test there could be on the cards for the sessions at the start of the week before bears engage in force again.
With that being said, should the US dollar continue to slide, then bears will be keen to see a break of the 74 level that will expose 73.80support, an eara that should significant trading activity throughout the Sepetember business of this year.
Author
Ross J Burland
FXStreet
Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.
