USD/INR Price Analysis: Indian rupee vulnerable while above 74.40
- USD/INR is about to end the week with modest gains.
- Chart is biased to the upside, with dollar’s momentum fading.
- Break under 74.40 to strengthen the Indian rupee.
The USD/INR is rising on Friday as it continues to rebound after approaching a critical support around 74.40/50. The mentioned area contains a horizon level, the 20-day simple moving average and a short-term uptrend line. The average is starting to flatten showing fading momentum for the US dollar.
A break under 74.40 would turn the short-term outlook to negative, leaving it vulnerable to more losses. The target is seen at 74.10. The area between 74.00 and 74.10 is a strong support band that should limit the decline initially, favoring a rebound.
On the upside, a close above 74.69 should clear the way for a new test of USD/INR to the 74.90 barrier. That area is a key resistance that protects 75.00. Above the next resistance level might be seen at 75.40 and 75.65 (April high).
USD/INR daily chart
Author
Matías Salord
FXStreet
Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.
