- September 8, 2020
- Posted by: Analysis Team
- Category: Forex News
- USD/INR extends Monday’s recovery moves from 73.01 beyond 50-bar SMA.
- Beijing warns India over latest moves near LAC.
- The rising wedge’s resistance, 100-bar SMA can question the bulls.
- Further selling may wait for confirmation of the bearish chart pattern.
USD/INR takes the bids near 73.62, up 0.20% on a day, ahead of Tuesday’s European session. The Indian rupee recently gained after China accuses New Delhi of fire shots near the Line of Actual Control (LAC).
The Asian majors have been at loggerheads off-late amid the border disputes. The geopolitical tension is gaining momentum as the friendship between US President Donald Trump and Indian Prime Minister Narendra Modi seems to push the dragon nation out of the world’s bright side. As a result, Washington and New Delhi are turning the heat of anti-trade measures over the Xi Jinping-led country.
Read: China accuses India of serious military provocation – CCTV
In doing so, the pair crosses 50-bar SMA amid bullish MACD, which in turn suggests further advances to an upward sloping trend line from August 31, forming part of the rising wedge bearish pattern, around 73.78.
Even so, the bulls are less likely to remain for long as 100-bar SMA near 74.00 stands tall to challenge the quote additional rise.
Meanwhile, the pair’s declines below the 50-bar SMA level of 73.33 will push the sellers to watch over the rising wedge’s support line, at 73.07 as a break of which can magnify the selling pressure towards the early-2020 top surrounding 72.20.
Though, 73.00 round-figures and the monthly low near 72.76 may offer intermediate halts during the heavy fall.
USD/INR four-hour chart
Trend: Pullback expected