- USD/INR traded in the red for the fourth consecutive session on Monday.
- Bears are likely to wait for a sustained break below the 70.50-45 region.
The USD/INR cross extended its sharp retracement slide from four-month tops, levels just above mid-72.00s, and remained under some selling pressure for the fourth straight session on Monday.
The downward momentum dragged the cross farther below the 71.00 handle to its lowest level since December 16, albeit the bearish pressure eased ahead of the 70.50-45 strong horizontal support.
The mentioned region coincides with the very important 200-day SMA and should now act as a key pivotal point for short-term and help determine the pair’s next leg of a directional move.
Given the pair’s recent rejection from the 72.50-60 supply zone, the said support would further mark the neckline support of a bearish double-top chart pattern formation on the daily chart.
Hence, a decisive breakthrough should be seen as a fresh trigger for bearish traders and open the room for a slide below the key 70.000 psychological mark towards the next support near the 69.30 region.
On the flip side, the 71.00-71.10 region now seems to act as immediate support, above which a bout of short-covering has might lift the cross back towards the 71.55-60 supply zone.
USD/INR daily chart
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