- May 17, 2021
- Posted by: Analysis Team
- Category: Forex News
- USD/INR battles six-week-old horizontal support amid downward sloping Momentum.
- Failures to stay beyond key Fibonacci retracement levels, sustained trading below 200-SMA favor bears.
USD/INR holds lower ground near 73.25, down 0.05% intraday, amid the initial Indian trading session on Monday.
The Indian rupee pair failed to keep the bounce off short-term key horizontal support during the last week and the downbeat Momentum line also backed the resulted weakness, which in turn keeps USD/INR bears hopeful.
However, a clear downside break of 73.20 becomes necessary for the sellers before targeting the 73.00 threshold, not to forget the late March tops surrounding 72.70.
It should, however, be noted that March’s low near 72.25 and February’s bottom close to 72.17 may test the USD/INR bears before directing them to the 72.00 round figure.
Alternatively, 61.8% Fibonacci retracement of March-April upside and 200-SMA, respectively near 73.55 and 74.20, become the key upside hurdles to watch during the quote’s fresh run-up, not to forget the recent highs near 73.70.
Overall, USD/INR remains bearish but the sellers seem tired of late.
USD/INR FOUR-HOUR CHART