• USD/INR extends pullback from 200-bar SMA inside a bullish chart formation.
• MACD flirts with bears, challenges to short-term ascending channel can’t be ruled out.

Having failed to cross 200-bar SMA, USD/INR recedes to 73.40, down 0.10% intraday, during the initial Indian session on Tuesday. Even so, the pair remains inside an upward sloping channel formation established since January 04.

It should, however, be noted that the MACD conditions are easing off-late, which in turn suggests further deterioration in the quote towards the stated channel’s support line, at 73.69 now.

If at all the USD/INR sellers defy the bullish chart pattern, the 73.00 round-figure and the monthly low near 72.85 will be in the spotlight.

On the contrary, an upside break of 200-bar SMA, currently around 73.55, will escalate the week-long run-up in the direction of the upper line of the stated channel, at 74.00 now.

While December 23 top of 74.12 could entertain the USD/INR buyers past-74.00, July 2020 bottom surrounding 74.50 may question any further upside.

USD/INR FOUR-HOUR CHART

Trend: Pullback expected