- USD/INR drops below 10-DMA for the first time in five weeks.
- MACD conditions favor bearish momentum but 74.00 becomes the key.
- Bulls need a daily closing beyond mid-April lows to confirm further ruling.
USD/INR remains on the back foot near the weekly low, down 0.05% around 74.28, amid the initial hour of the Indian trading session for Tuesday. The Indian rupee (INR) pair justifies the downside momentum with a first break below 10-DMA since early June inside a two-month-old rising wedge bearish chart formation.
In addition to the immediate DMA breakdown, downward sloping MACD lines to cross the signal indicator and general a bearish bar also favor the USD/INR sellers.
However, the support line of the stated wedge, near the 74.00 round figure becomes a crucial level to watch during the pair’s further weakness as a break of which will not hesitate to challenge the yearly low surrounding 72.15.
During the fall, the late March’s top around 73.60 and the 73.00 threshold may entertain the USD/INR bears.
Meanwhile, a daily closing past the 10-DMA level of 74.31 will renew the buying pressure towards April 19 bottom close to 74.55.
It’s worth noting that the USD/INR upside beyond 74.55 could challenge the bearish chart pattern, as bulls will then attack the 74.85 level comprising the wedge’s resistance line.
Overall, USD/INR consolidates recent gains but bears need confirmation to retake the controls.
USD/INR: Daily chart
Trend: Further weakness expected
Additional important levels
|Today last price||74.2595|
|Today Daily Change||-0.0521|
|Today Daily Change %||-0.07%|
|Today daily open||74.3116|
|Previous Daily High||74.5725|
|Previous Daily Low||74.2581|
|Previous Weekly High||74.8958|
|Previous Weekly Low||74.14|
|Previous Monthly High||74.5135|
|Previous Monthly Low||72.4854|
|Daily Fibonacci 38.2%||74.3782|
|Daily Fibonacci 61.8%||74.4524|
|Daily Pivot Point S1||74.189|
|Daily Pivot Point S2||74.0663|
|Daily Pivot Point S3||73.8746|
|Daily Pivot Point R1||74.5034|
|Daily Pivot Point R2||74.6951|
|Daily Pivot Point R3||74.8178|
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