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.

Omkar Godbole FXStreet Contributor

Daily Chart

Spot Rate: 73.50

Daily High: 73.52

Daily Low: 73.42

Trend: Bearish

Resistance

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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