USD/INR Technical Analysis: Downside favored after bearish Marubozu, bulls need break above 100-day MA

Omkar Godbole FXStreet Contributor

The USD/INR pair fell 0.41 percent yesterday – its biggest single-day decline since Jan. 4 – and could extend the drop to 71.00 today.

Daily chart

The pair charted a bearish Marubozu candle yesterday, which essentially means the bears remained in control throughout the day.

The back-to-back rejections at the 100-day moving average (MA) and the strong bearish follow-through (Marubozu) has invalidated the bullish view put forward by the wedge breakout, confirmed on Jan. 18.

As a result, the support at 71.00-70.86 (Jan. 31 low) could soon come into play.

A daily close above the 100-day MA, currently at 71.77, would revive the bullish view.

Trend: bearish

1. R3 72.375
2. R2 72.145
3. R1 71.725
PP 71.495
1. S1 71.075
2. S2 70.845
3. S3 70.425

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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