USD/INR Price Analysis: Indian rupee clings to two-month high near 74.00 as RSI signals pullback
- USD/INR seesaws near multi-day low, keeps bounce off 61.8% Fibonacci retracement level.
- Oversold RSI conditions signal corrective pullback towards 200-DMA.
- Ascending trend line from May adds to the downside filters.
USD/INR snaps four-day downtrend near the lowest levels last seen in November during early Tuesday. In doing so, the Indian rupee (INR) pair makes rounds to the 74.00 threshold.
The quote’s latest pause could be linked to the bounce off a 61.8% Fibonacci retracement (Fibo.) of May-December upside, as well as oversold RSI conditions.
It should be noted, however, that a clear downside break of the 200-DMA, around 74.30 at the latest, keeps USD/INR sellers hopeful.
Even if the pair crosses the 74.30 hurdle, a convergence of the previous support line from mid-September and 50% Fibo. will challenge the USD/INR buyers around 74.45.
On the contrary, a downside break of the immediate key Fibonacci support level of 73.96 will direct the pair towards an ascending support line from May, near 73.65.
Although the USD/INR weakness past 73.65 becomes less likely, sellers won’t hesitate to aim for September’s low of 72.90 if the support line breaks.
Overall, USD/INR sellers seem to have run out of fuel but buyers have major challenges before retaking the controls.
USD/INR: Daily chart
Trend: Recovery 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.
