USD/INR Technical Analysis: Drops to 1-week lows, eyeing 61.8% Fibo. support
- RBI's decision to hold rates steady exerts some fresh pressure on USD/INR.
- Weakness below last week's swing low will pave the way for further losses.
The USD/INR cross added to the previous session's losses and witnessed some follow-through selling for the second consecutive session on Thursday.
The fact that the Reserve Bank of India (RBI) surprised market participants and left interest rates unchanged provided a goodish lift to the Indian rupee.
The pair has now moved well within the striking distance of last week's swing lows, a support marked by the 61.8% Fibonacci level of the 70.50-72.37 move.
This is followed by a three-week-old descending trend-line, around the 71.00 handle, which if broken might be seen as a key trigger for bearish traders.
Below the mentioned support, the pair is likely to accelerate the slide further towards testing early-November swing lows support near the 70.50 region.
On the flip side, any attempted recovery is likely to confront some fresh supply near the 71.40 region (50% Fibo.) and remain capped near 200-hour SMA.
Sustained move beyond the latter will negate any near-term bearish bias and assist the pair to make a fresh attempt towards reclaiming the 72.00 handle.
USD/INR 1-hourly chart
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Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
