USD/INR Price Analysis: Key indicator reports strongest bearish bias since December
- USD/INR's momentum indicator shows a downward move is gathering pace.
- Stochastic, too, shows a bearish bias and suggests scope for a notable pullback.
The path of least resistance for USD/INR appears to be on the downside, as a key indicator is reporting the strongest bearish bias since mid-December.
The MACD histogram, a technical tool used to identify trend changes and trend strength, is printing a negative value of 0.1396, the lowest since Dec. 12. A crossover below zero represents bearish reversal and deeper bars below the zero line indicate a strengthening of the downward momentum.
The MACD is printing a deeper bar for the third straight session. With the bearish momentum gathering pace, USD/INR risks falling 75.845 below (April 23 low). That would establish a lower highs, lower lows pattern, and confirm a bullish-to-bearish trend change on the daily chart.
The slow stochastic oscillator is also reporting bearish conditions below a below-50 print. That said, the bearish bias would weaken if the spot finds acceptance above 76.4050 (April 24 high).
Daily chart
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Trend: Bearish
Technical levels
Author
Omkar Godbole
FXStreet Contributor
Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.
