USD/INR technical analysis: Choppy inside a Pennant formation

Having flashed a multi-month high, USD/INR forms a Pennant pattern on the 4-hour chart.
A generally trend-continuation formation is being challenged by overbought RSI.

Anil Panchal FXStreet

USD/INR follows a week-long Pennant formation while making the rounds to 70.94 ahead of the European session opening on Monday.

Prices are currently capped in a range between 71.22 and 70.40 with 71.53 and 69.82 being following levels to watch during either side breakouts.

The Pennant formation generally continues the trend but overbought levels of 14-bar relative strength, in this case, might tame the bulls targeting February high close to 72.00.

On the downside, July 30 low near 68.65 and July 11 bottom around 68.25 can please bears during further declines below 69.82.

USD/INR 4-hour chart

Trend: Sideways

1. R3 72.0312
2. R2 71.5826
3. R1 71.3133
PP 70.8647
1. S1 70.5954
2. S2 70.1468
3. S3 69.8775

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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