- USD/INR bears step in and take on the bullish commitments.
- USD/INR daily support is giving way and daily resistance plays its role.
USD/INR is losing its bullish allure as it takes a trip to beneath what would have texted to be a reliable level of the support structure. The price had been advancing over the course of the last several weeks, but the resistance has proven to be a tough nut to crack. The price is now taking on the bullish commitments and pricing below a critical Fibonacci retracement level as follows:
USD/INR daily chart
-637703761614968220.png)
As illustrated, the 61.8% is under pressure but the battle has just begun. There is still room for a correction deeper before the bulls might get squeezed out entirely:
-637703764142481868.png)
As shown, the price can now use the old support as resistance and a retest of the neckline of the M-formation could lead to a lower low to the next level of support near 74.60. If bulls can hold the fort there, then there would be prospects of an upside continuation building from that point. Below there, however, the bulls could well suffer a significant correction from the bears.
US yields in focus
This as the US 10-Year Treasury yield rallied to 1.6730% to score a fresh five-month high before it sank to 1.62% on Wednesday from a high of 1.673%. However, they could be about to surge to the upside from a technical perspective as the yield spikes from the 21-50 hour SMMA cloud. This would support the US dollar and put bulls back in charge for USD/INR.
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