- USD/INR struggles near a four-month-old support line amid oversold RSI conditions.
- Bearish MACD signals, failures to cross 50-day SMA keep the sellers hopeful.
- July lows can question the pullback, further downside can eye March 13 low.
USD/INR bounces off intraday low of 74.07 to 74.18 during the initial Indian session on Tuesday. The cross trades near the lowest since March 18 while battling a descending trend line from April 30.
Also challenging the bears are oversold RSI conditions and 50% Fibonacci retracement of the pair’s upside from December 13, 2019 to April 22, 2020.
Although the strong supports and RSI status increase the odds of the pair’s pullback towards July month’s low near 74.45, it’s further upside will be challenged by a confluence of 38.2% Fibonacci retracement and 50-day SMA around 75.00-05.
On the contrary MACD signals the most bearish signs since the early-July which in turn awaits a daily closing below the 74.10 to target March 13 bottom of 73.71.
It should, however, be noted that the pair’s extended downside past-73.71 will be challenged by 61.8% of Fibonacci retracement at 73.30.
USD/INR daily chart
Trend: Pullback expected
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