- February 4, 2021
- Posted by: Analysis Team
- Category: Forex News
- USD/INR bounces off fresh low since September 2020.
- Further recovery eyes 21-day SMA, falling wedge resistance.
- Yearly support line, late 2020 bottom challenge bears.
USD/INR snaps two-day downtrend while flashing 0.12% intraday gains, currently around 72.90, during the initial Indian trading session on Thursday. In doing so, the quote takes a U-turn from the fresh low in five months, marked earlier in the day, while staying inside a bullish chart pattern.
Considering the pair’s repeated rejection from a downward sloping trend line from a one-month-old support line, forming part of a falling wedge, could with normal RSI and MACD conditions, USD/INR is likely preparing for an upside.
However, the 21-day SMA level of 73.06 and the wedge’s resistance line near 73.15 will be tough nuts to crack for the USD/INR buyers before they head to the 2021 peak surrounding 73.76.
On the contrary, a downside break of the stated wedge’s support line, at 72.79 now, will have to break the September 2020 low of 72.76 before convincing the USD/INR bears.
Following that the early 2020 top near 72.20 and the 72.00 round-figures should return to the charts.
Overall, USD/INR sellers seem tiring around 72.70 and hence confirmation of the bullish chart pattern will have increased strength to please the bulls.
USD/INR DAILY CHART
Trend: Further recovery expected