- USD/INR consolidates before the next push higher towards 75.00.
- The spot wavers inside a rising channel, awaiting a fresh impetus.
- Bullish RSI, crossover point to a test of the channel hurdle at 74.75.
USD/INR is clinging onto the recent trading range around the midpoint of 74.00, having finished Tuesday almost unchanged despite a renewed upside in oil prices.
However, the consolidation in the prices could be seen as the onset of a new uptrend in the currency pair, as the bulls brace for a rally to 75.00 and beyond.
USD/INR remains capped below the five-week-old rising channel upper boundary at 74.75, awaiting a buying resurgence in the session ahead.
A daily closing above that level is needed to unleash additional gains towards the 75.00 round number.
Further, buyers will target the April highs near 75.60 if the bulls fight back complete control.
The 14-day Relative Strength Index remains flatlined, sitting just beneath the overbought region, suggesting that there remains more room to the upside.
A bear cross, represented by the 21-Daily Moving Average (DMA) cutting through the 100-DMA from below, adds credence to a potential move higher.
USD/INR: Daily chart
On the flip side, immediate support is seen at Tuesday’s low of 74.42, below which a drop towards the horizontal 50-Daily Moving Average (DMA) at 73.93 cannot be ruled out.
At that point, the 21 and 100-DMAs coincide, making it a powerful demand area.
A breach of the last on a sustained break would validate a rising channel breakdown, opening floors towards the horizontal 200-DMA support at 73.61.
USD/INR: Additional levels
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