USD/INR Price Analysis: Turns sideways on Symmetrical Triangle formation

The USD/INR pair has turned sideways in a narrow range of 78.03-78.30 from Monday after failing to cross the critical resistance of 78.40. A responsive selling action dragged the greenback bulls and underpinned a volatility contraction. It is worth noting that after a sheer upside move a price or time correction takes place but that should not be mixed with a bearish reversal.

On an hourly scale, the major is auctioning in a Symmetrical Triangle that signals for slippage in the standard deviation respective to the asset followed by a breakout in the same. The advancing trendline is placed from Monday’s low at 77.98 while the downward sloping trendline is plotted from Monday’s high at 78.41.

The asset has tumbled below the 20- and 50-period Exponential Moving Averages (EMAs) at 78.11 and 78.05 respectively, which signals a short-term correction in the counter.

Meanwhile, the Relative Strength Index (RSI) (14) is oscillating in a 40.00-60.00 range, which signals a continuation of sideways movement.

Should the asset oversteps Tuesday’s high at 78.30, an upside breach of the Symmetrical Triangle will strengthen the greenback bulls and will drive the asset towards Monday’s high at 78.40, followed by the round-level resistance at 78.50.

Alternatively, the Indian rupee bulls could dictate the asset if it delivers a downside break of the above-mentioned chart pattern at the psychological support of 78.00. This will drag the asset towards Thursday’s average price at 77.85. A slippage below Thursday’s average price will send the asset towards Thursday’s low at 77.68.

USD/INR hourly chart