- USD/INR slips below 72.40 to refresh the 11-month low.
- RSI has a downside gap before it hits the oversold area, suggesting further weakness.
- 10-day SMA, six-week-old resistance line guard immediate upside.
USD/INR takes offers near 72.37, the fresh low since March 2020, during the initial Indian session on Monday. In doing so, the quote drops for the fourth consecutive day.
Considering the downward sloping RSI, not oversold, USD/INR bears are likely to keep the reins. However, a descending support line from November 2020, near 72.15, can challenge short-term declines.
Also acting as downside filters are the highs marked between late 2019 and early 2020, around 72.20.
It should, however, be noted that the 72.00 threshold gains the ultimate attention of the USD/INR bears.
On the flip side, an upside break of 10-day SMA, at 72.67 now, will favor a fresh run-up towards a descending resistance line from January 11, currently around 72.85.
During the quote’s sustained run-up beyond 72.85, the 73.00 round-figure and the monthly peak surrounding 73.20 will be the key to watch.
Overall, USD/INR is in a bearish trend but intermediate bounces can’t be ruled out.
USD/INR daily chart
Trend: Bearish
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