- USD/INR retreats from 10-week high, snaps two-day winning streak.
- RSI hints at a pullback towards 61.8% Fibonacci retracement level.
- Weekly support line, bullish MACD signals can defend buyers afterward.
- Upside break of 76.20 will aim for December 2021 peak.
USD/INR takes a U-turn from the highest levels since late December 2021, sidelined around 75.80 during the initial Indian trading session on Wednesday.
The Indian rupee (INR) pair’s pullback marks another failure to cross an upward sloping resistance line from January 03, as well as nearly overbought the RSI line.
However, the 61.8% Fibonacci retracement of December-January downside, around 75.50, will challenge the intraday pair sellers.
Should the quote remain bearish past-75.50, a one-week-old support line near 95.30 will test the downside moves ahead of highlighting the 100-DMA and 200-DMA, respectively around 74.85 and 74.45.
Meanwhile, the aforementioned resistance line, at 76.20 by the press time, holds the key to the USD/INR rally towards the latest 2021 peak of 76.59.
Overall, USD/INR bulls have gone a long way and hence a pullback can be expected. Though, bears are far away from taking control.
USD/INR: Daily chart
Trend: Pullback expected
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