- USD/INR bears are taking control and are moving into daily support.
- USD/INR could be in for a bullish correction to test the 61.8% Fibo.
The price of USD/INR has been in the hands of the bears and broke a key level of support this week. The following illustrates the next level of support for which the pair is targeting and the prospects for a potential move back to restest the old support.
USD/INR daily chart
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As illustrated, the price is testing the 73.80s following a strong move to the downside at the end of last week following the Nonfarm Payrolls. Despite a solid outcome for the US jobs sector, investors instead have taken the view that the central banks are far from hiking rates. This leaves a bearish technical outlook for USD crosses as US yields fall in unison with the less hawkish sentiment in the money markets, exposing USD/INR's downside.
With that being said, the price could still find this area on the chats a tough nut to crack considering how much structure there is between here and the mid lows near 73.40. Nevertheless, on a restest of the 74.30s, near the 61.8% ratio, the bears could be inclined to move in at a discount with an aim to fully break the aforementioned support in the coming week.
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