- July 2, 2021
- Posted by: Analysis Team
- Category: Forex News
- USD/INR refreshes seven-week top, following a three-month-old resistance break.
- Bullish MACD, sustained breakout keeps pair buyers hopeful.
- Horizontal line from November 2020, seven-week-long resistance line probe bulls.
- 10-DMA adds to the downside support ahead of the key 74.18–12 area.
USD/INR justifies the upside break of a three-month-old resistance, now support, while refreshing the highest levels since April 27 during early Friday. That said, the Indian rupee (INR) bears print 74.63 as a quote versus the US dollar, up 0.12% intraday, ahead of the critical US jobs report.
Given the pair’s successful break of the previously important horizontal resistance, backed by bullish MACD and trading above 10-DMA, USD/INR braces for another horizontal hurdle stretched from early November, surrounding $74.70.
However, any further upside past-74.70 will be questioned by an ascending trend line from May 14, near 74.80, a break of which could recall the 75.00 threshold to the chart.
Meanwhile, a downside break of the resistance-turned-support near 74.50 may bounce off the 10-DMA level of 74.30 before highlighting the 74.18-12 region for USD/INR sellers, comprising multiple levels marked since late December 2020.
It’s worth noting that the overbought RSI conditions and receding bullish bias of MACD may trigger the pair’s pullback moves from the nearby resistances. Though, it all depends upon the US Nonfarm Payrolls and hence traders should be cautious ahead of the event.
USD/INR: DAILY CHART