USD/INR Price Analysis: Indian Rupee sellers need validation from 82.55
|
- USD/INR extends the previous day’s rebound from 10-week-old ascending support line.
- Upside break of 200-SMA, firmer but not overbought RSI favor Indian Rupee sellers.
- Convergence of 13-day-old resistance line, 23.6% Fibonacci retracement challenges USD/INR bulls.
USD/INR prints the biggest daily gains in more than two weeks as it rises to 82.45 during early Monday.
In doing so, the Indian Rupee (INR) pair justifies the previous day’s rebound from a 2.5-month-long ascending support line while crossing the 200-bar Simple Moving Average (SMA).
It’s worth noting that the firmer RSI (14) line, not overbought, also underpins the bullish bias about the USD/INR pair.
However, a convergence of the downward-sloping resistance line from mid-March joins the 23.6% Fibonacci retracement level of the pair’s January-February upside to highlight the 82.55 level as a tough nut to crack for the USD/INR bulls.
Should the Indian Rupee pair remains firmer past 82.55 hurdle, a quick run-up toward the 83.00 round figure can’t be ruled out. Though, the yearly high of around 83.10, as well as the record top of 83.42 marked in October 2022, could challenge the pair’s further upside.
Alternatively, pullback moves remain elusive unless the quote offers decisive trading below the 200-bar SMA level surrounding 82.40.
Even so, the USD/INR bears are likely to remain cautious beyond the aforementioned multi-day-old support line, close to 82.10 by the press time.
In a case where the Indian Rupee buyers break the 82.10 support, the odds of witnessing a slump toward the 61.8% Fibonacci retracement level and then toward the previous monthly low, respectively near 81.70 and 81.50, can be expected.
USD/INR: Four-hour chart
Trend: Limited upside expected
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.