- June 17, 2021
- Posted by: Analysis Team
- Category: Forex News
- USD/INR remains pressured around intraday low, reverses from six-week top.
- Bullish MACD, successful trading beyond previous resistance from May, immediate support line keep buyers hopeful.
- 50% Fibonacci retracement level adds to the upside filters.
USD/INR snaps two-day uptrend, fails to extend the Fed-led rally, while bouncing off intraday low of 73.58 to 73.69, down 0.19% on a day, amid the initial Indian session trading. In doing so, the Indian rupee (INR) pair reverses the previous day’s run-up beyond the 73.75-70 key area, comprising 50-day SMA and multiple levels marked since early March.
However, bullish MACD and the pairs’ sustained run-up beyond a six-week-old horizontal line, not to forget an ascending support line from May 28, backs the odds of the pair’s further upside.
Hence, USD/INR recovery could again wobble around 73.70-75 before heading towards the latest tops near 73.85 and then to 50% Fibonacci retracement level of April-May downside, close to the 74.00 threshold.
During the pair’s extended rise past 74.00, the mid-April lows near 74.55 should return to the charts.
On the flip side, a continuation of the bearish reversal could attack the horizontal support area around 73.30 before revisiting the short-term rising support line near 73.14.
Though, any further weakness below 73.14 will be questioned by the 73.00 round figure and 72.80 before highlighting the previous month’s low near 72.33 for the USD/INR bears.
Overall, USD/INR stays above the previously strong resistances and hence any pullback shouldn’t be considered bearish until the quote breaks 73.14 support.
USD/INR DAILY CHART