USD/INR Price Analysis: Bulls seem to have regained control

USD/INR's multi-month consolidation ends with a bullish breakout.
Technical indicators favor stronger gains in the near-term.

Omkar Godbole FXStreet Contributor

USD/INR jumped 0.72% on Thursday to print its biggest single-day gain since May 1.

The big move confirmed an upside break of the 2.5-month-long contracting triangle represented by trendlines connecting March 19 and April 21 highs and March 20 and April 30 lows.

The triangle breakout indicates the revival of the bull trend from lows below $70 observed in January and has opened the doors for re-test of resistance at $76.82 (April 21 high).

The 14-day relative strength index (RSI), too, is reporting a channel breakout and bullish conditions with an above-50 print. In addition, the MACD histogram is signaling a strengthening of upward momentum with higher bars above the zero line.

The bullish bias would be invalidated if Thursday's low of 75.37 is breached.

Daily chart

Trend: Bullish

Technical levels

1. R3 76.6737
2. R2 76.3607
3. R1 76.1661
PP 75.8531
1. S1 75.6585
2. S2 75.3455
3. S3 75.1509

Author

Omkar Godbole

FXStreet Contributor

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

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