USD/INR Price Analysis: Indian Rupee buyers are well-set for 80.90
- USD/INR bears take a breather around two-week low.
- Sustained trading below 50-DMA, bearish oscillators favor sellers.
- Four-month-old support line, 100-DMA to challenge bears, descending trend line from late October adds to the upside filters.
USD/INR stays defensive around the lowest levels in two weeks, steady around 81.10 by the press time, as bears pause after a four-day south-run during early Friday. Even so, the Indian Rupee (INR) buyers remain hopeful to extend the latest downturn.
That said, the USD/INR pair’s failure to cross the 50-DMA joins the Moving Average Convergence and Divergence (MACD) indicator’s bears signals and downbeat conditions of the Relative Strength Index (RSI) line, placed at 14, to keep bears hopeful.
With this, the intraday sellers could keep attacking the 81.00 threshold ahead of reaching the key support line from early August, near 80.90.
Following that, the 100-DMA level surrounding 80.77 and November’s low of 80.47 could lure the bears afterward.
Alternatively, a convergence of the three-week-old descending trend line and the 50-DMA highlights 81.90 as strong resistance for the USD/INR bulls to crack before retaking control.
Even so, a downward-sloping resistance line from October 20, close to 82.35, could challenge the pair’s further upside.
In a case where AUD/USD remains firmer past 82.35, the odds of its run-up towards the record high marked in October around 83.30 can’t be ruled out.
USD/INR: Daily chart
Trend: Further downside 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.
