- USD/INR created an inverted hammer on Friday, neutralizing the immediate bearish setup.
- A close above the hammer's high of 70.88 is needed to confirm a bullish reversal.
USD/INR created an inverted hammer candlestick pattern on Friday, snapping a four-day losing streak.
The inverted hammer comprises a small real body, an extended upper wick. The candle's upper wick indicates the bulls are looking to drive the price upwards.
As a result, the inverted hammer is considered a sign of bullish reversal, especially if it appears following a notable sell-off.
In USD/INR's case, it has appeared following a drop from 71.86 to 70.53.
The bearish-to-bullish trend change, however, would be confirmed if the spot closes today above 70.88 (inverted hammer's high).
So, Friday's high is the level to beat for the bulls. On the flip side, a break below Friday's low of 70.53 is needed to revive the bearish view.
Daily chart
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Trend: Bullish above 70.88
Technical levels
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