USD/INR Price Analysis: Approaches multi-month high above 74.50
- USD/INR continues with its late May month rally and remains on track to gain above 74.50.
- Bulls face stiff resistance near the 74.50 key psychological mark.
- Momentum oscillations tilt in the favor of upside momentum.
USD/INR accumulates minor gains on Thursday in the Asian session. The pair moves in a 10 pips trading band with an upside bias.
At the time of writing, USD/INR is trading at 74.35, up 0.06% for the day.
USD/INR daily chart
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On the daily chart, the pair has been consolidating in the 74.10-74.50 trading band for the previous two weeks.
A daily close above 74.50, the key psychological mark would strengthen the upward price action further. USD/INR bulls will march toward the 73.50 horizontal resistance level.
The Moving Average Convergence Divergence (MACD) indicator trades consistently above the midline, which indicates a continuation of the prevailing trend in the pair.
In doing so, the bulls would attempt to rupture June 26 high at 75.26 followed by the 75.25 horizontal resistance level.
Alternatively, if price failed to break 74.50, it could move back to the lower trading range at 74.10.
A sustained move below the 23.6% Fibonacci retracement, which extends from the low of 72.33 at 74.00 will open the gates for further downside movement.
Market participants would then aim for the 73.75 horizontal support level followed by the 50% Fibonacci retracement at 73.40.
USD/INR additional level
Author
Rekha Chauhan
Independent Analyst
Rekha Chauhan has been working as a content writer and research analyst in the forex and equity market domain for over two years.
