- USD/INR rises for the fourth consecutive day on hawkish Fed.
- Two-week-old ascending trend channel may test the bulls, sellers need 74.55 breakout to keep reins.
- Firmer MACD signals, a clear break of 200-SMA favor bulls.
USD/INR stays firmer at the highest levels in five weeks around 75.12 during Thursday’s Asian session.
The Indian rupee (INR) pair renewed multi-day high during the early hours of trading in Asia as US dollar bulls cheered the Federal Reserve’s (Fed) hawkish halt. The greenback strength helped USD/INR prices to rise further beyond the 200-SMA.
Read: Fed Quick Analysis: Three dovish moves boost stocks, why more could come, why the dollar could rise
As the MACD signal joins firmer prices past the key moving average, USD/INR bulls are likely to keep the reins.
However, the resistance line of a fortnight-long ascending trend channel joins the 50% Fibonacci retracement (Fibo.) of December-January downside near 75.20 to portray a short-term key resistance for the USD/INR bulls.
Should the quote rise past $75.20, further upside towards the 61.8% Fibo. level and late December swing high, respectively around 75.50 and 75.90, will be in focus.
Alternatively, pullback moves remain less worrisome until staying beyond 200-SMA and 38.2% Fibonacci retracement level, close to 74.80.
Following that, the support line of the stated bullish channel, close to 74.55, will be crucial to watch for USD/INR bears as a break of which can recall sub-74.00 area to the chart.
USD/INR: Four-hour chart
Trend: Further upside expected
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