USD/INR Price Analysis: Double top, RSI divergence tease Indian rupee buyers below 78.00
- USD/INR again slips after refreshing all-time high, renews daily low of late.
- Bearish RSI divergence hints at further declines but “Double Top” confirmation needed to convince sellers.
- 50-SMA, weekly support line act as extra downside filters.
USD/INR takes offers to renew intraday low around 77.65, after refreshing the all-time peak with 78.03 earlier in the day, as the US dollar struggles to keep recent gains amid cautious optimism.
In doing so, the Indian rupee (INR) pair portrays a “Double Top” bearish chart pattern on the four-hour play during early Thursday morning in Europe.
Not only the “Double Top” but bearish RSI divergence, identified when RSI prints lower-high even if prices make higher-high, also keep USD/INR bears hopeful.
However, a clear downside break of the latest low near 77.33 becomes necessary to confirm the bearish chart formation.
Ahead of that, the 50-SMA and a one-week-old rising trend line, respectively around 77.48 and 77.38, challenge the USD/INR pair sellers.
Meanwhile, recovery moves need a clear run-up beyond the 78.00 threshold, also crossing the latest high of 78.03, to reject the bearish chart formation.
It’s worth noting that the RSI should also accompany the jump in the prices to direct USD/INR bulls toward the 80.00 psychological magnet.
USD/INR: Four-hour chart
Trend: Pullback expected
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
