- USD/INR bulls move in for the kill to the M-formation's neckline.
- Resistance could see the price rejected back towards the daily support.
USD/INR is now recovering from the daily lows as the bulls step in on a stronger US dollar at the end of this week. The following illustrates the various components in play from the technical perspective. As per the prior session's analysis, it was stated that US yields and a rising US dollar could see the spice of USD/INR firm.
US yields and DXY charts
Before...
After...
DXY before...
After...
USD/INR analysis
Before...
-637703764142481868.png)
It was stated that a restest the neckline of the M-formation could lead to a lower low to the next level of support near 74.60. ''If bulls can hold the fort there, then there would be prospects of an upside continuation building from that point. Below there, however, the bulls could well suffer a significant correction from the bears.''
We are seeing this start to play out as the price heads into the neckline of the M-formation:
-637704640752583024.png)
As illustrated, the price is moving in on the resistance and if this holds, then we can expect to see supply emerge to the aforementioned support area. On the other hand, should US yield and the greenback continue higher, then the correction will likely be over and there will be probabilities of an upside extension.
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