USD/INR Technical Analysis: Daily chart retains bearish bias despite hawkish Fed
- The Fed minutes released yesterday revealed a growing concern among the officials that policy would have to remain “modestly restrictive for a time.
- As a result, the USD/INR pair is reporting moderate gains at press time, but is struggling to cross the resistance of the trendline connecting the Aug. 9 low and Sept. 21 low, reinforcing the bearish view put forward by the downside break of that trendline on Oct. 16 and the downward sloping 5-day and 10-day exponential moving averages (EMAs).
- The daily chart also shows that pair topped out at 74.50 on the back of the bearish divergence of the relative strength index.
- The pair looks set to test the 50-day EMA in the next few days. The EMA is currently located at 72.07.
- Only a close above 74.00 would neutralize the bearish outlook.

Daily Chart
Spot Rate: 73.50
Daily High: 73.52
Daily Low: 73.42
Trend: Bearish
R1: 73.55 (10-day EMA)
R2: 74.02 (Oct. 15 high)
R3: 74.52 (Oct. 11 high)
Support
S1: 73.14 (Oct. 16 low)
S2: 72.07 (50-day EMA)
S3: 72.27 (Sept. 26 low)
Author

Omkar Godbole
FXStreet Contributor
Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.
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