USD/INR technical analysis: Bulls' progress on hold near 100-day MA


  • USD/INR's upside is being capped by key average. 
  • Markets already priced in for two Fed rate cuts. 
  • A break above 70.00 looks likely.

For USD/INR, the path of least resistance is on the higher side. However, the upside is being capped by the 50-day moving average (MA) this week. 

The currency pair witnessed a falling wedge breakout on June 13, opening the doors to a retest of May's high of 70.78. The bullish move, however, seems to have stalled at the 100-day moving average resistance, currently at 69.93. 

Notably, the pair created a doji candle at the average hurdle on Monday, taking some shine off the wedge breakout confirmed last week. That said, the pattern is still valid and would further gain credence if the spot invalidates the doji candle with a close above 70.00 today. 

With 5- and 10- day MAs trending north and an impending bull cross between 5- and 50-day MAs, a break above 70.00 looks likely. It is worth noting that the markets are priced in for at least two Fed rate cuts this year. So, the pair is unlikely to see a big drop even if the Federal Reserve lays the groundwork for a rate cut later this year. The central bank's rate decision is scheduled at 18:00 GMT on Wednesday. 

The escalating trade tensions between the US and India also favor further upside in USD/INR

Daily chart

Trend: Bullish

Pivot points

    1. R3 3947.03
    2. R2 3931.98
    3. R1 3902.54
  1. PP 3887.48
    1. S1 3858.04
    2. S2 3842.99
    3. S3 3813.55

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD remains depressed but off daily lows

The EUR/USD pair is recovering from a daily low of 1.1216, although holding in negative territory for the day. US preliminary Michigan Consumer Sentiment Index improved by less-than-anticipated in July, coming in at 98.4 vs. the 98.5 expected.

EUR/USD News

GBP/USD trading marginally lower daily basis but above 1.2500

The Pound gave back some of its Thursday’s gain on dollar’s relief. The GBP/USD pair broke a daily descendant trend line coming from June’s high and holds above it, leaving little room for sellers to act.

GBP/USD News

USD/JPY: bears pausing, still in control

Japanese National Inflation steady at 0.7%YoY in June. US Michigan Consumer Sentiment Index expected at 98.5 in July. USD/JPY corrective advance falling short of signaling an interim bottom in place.

USD/JPY News

Gold consolidates around $ 1440, eyes US data for fresh direction

Gold (futures on Comex) extends its side-trend around the 1440 mark into the mid-European session, having stalled its retreat from 2019 highs of 1454 near 1437 region.

Gold News

Something has spooked the Fed

We wish we knew what it is. Wild talk of the US joining Japan and Europe with zero or negative return on the 10-year is or should be very frightening.

Read more

MAJORS

Cryptocurrencies

Signatures


  •  
  •  
  •  
  •  
  •