- USD/INR sellers struggle to defy bullish chart pattern during two-day downtrend.
- Further losses envisioned on the break of immediate support.
- Bullish breakout will aim for mid-April low, November tops.
USD/INR remains on the back foot for the second consecutive day, around an intraday low of 74.13 as Indian markets open for Friday. In doing so, the Indian rupee (INR) pair portrays depression inside a bullish chart pattern on the four-hour (4H) play.
Given the downward sloping RSI line and multiple hurdles to the north, USD/INR sellers seem to be on the upper hand. However, a clear downside break of 74.13, comprising the stated pattern’s support line, becomes necessary to reject bulls.
Following that, the 74.00 threshold and 73.58, low of the previous Thursday, could lure the bears ahead of highlighting the monthly ascending support line near 73.55. It’s worth noting that any further downside will be questioned by the 200-SMA level of 73.25.
On the flip side, pullback moves will be capped by the 74.50 round figure before the bullish formation’s resistance, around 74.55, gains the market’s attention. The mid-April lows add strength to the 74.55 hurdle.
If at all the USD/INR bulls manage to cross 74.55, November 2020 tops near the 75.00 round figure may offer an intermediate halt during the rally targeting the yearly peak of 75.63.
USD/INR four-hour chart
Trend: Further weakness expected