- USD/INR edges lower on Thursday in the pre-European session.
- More downside movement for pair, if prices slips below 73.40.
- Momentum oscillator holds into the oversold zone warns of any aggressive bets.
USD/INR extends the previous session’s losses in the early European trading hours on Thursday. The pair moves in a very narrow trade band of less than 10-pips.
At the time of writing, USD/INR is trading at 73.46, up 0.01% for the day.
USD/INR daily chart
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On the daily chart, USD/INR swiftly recovered from the lows made at the beginning of the September series at 72.89. The descending trendline from the high of 74.47 made on August 20 acts as a strong resistance barrier for USD/INR.
Furthermore, the downside is confirmed after price slipped below the 20-day Simple Moving Average (SMA) at 73.55.
The formations of Doji Candlesticks suggests indecisiveness among traders.
The Moving Average Convergence Divergence (MACD) indicator holds onto the oversold zone. Any downtick in the MACD could initiate a fresh round of selling for the pair with the first downside target at the 73.35 horizontal support level.
Next, USD/INR bears would likely march toward the 73.00 horizontal support level followed by a September 1 low of 72.89.
Alternatively, on the successful break of the bearish sloping line, the bulls would be active to capture the previous day’s high of 73.72 followed by the 73.80 horizontal resistance level.
The market participants would then make an attempt to test the high of August 27 at 74.19.
USD/INR additional levels
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