USD/INR Price Analysis: Focus on trendline support after biggest weekly decline since December 2018

USD/INR fell by 2.41% last week, the biggest weekly drop since December 2017.
The weekly chart suggests scope for a sell-off to rising trendline support.

Omkar Godbole FXStreet Contributor

USD/INR looks south, having carved out a bearish marubozu candle last week with a 2.41% drop. That is the biggest weekly decline since December 2018.

A bearish marubozu candle occurs when trades control the price action from day's open to close. In other words, the bearish marubozu signals the market's determination to dominantly trade in the downward direction.

As such, a drop to the trendline connecting January 2018 and July 2019 lows looks likely. At press time, the trendline support is located at 72.1820.

Supporting the bearish case is the descending 5- and 10-day simple moving averages (SMA) and a violation of the 50-week SMA.

Indeed, the daily chart indicators are reporting oversold conditions. Hence, a temporary bounce may be seen before a decline to the 2-1/2-year-long rising trendline.

Weekly chart

Trend: Bearish

Technical levels

USD/INR

Overview
Today last price	73.375
Today Daily Change	0.2465
Today Daily Change %	0.34
Today daily open	73.1285

Trends
Daily SMA20	74.6432
Daily SMA50	74.9062
Daily SMA100	75.385
Daily SMA200	73.9025

Levels
Previous Daily High	73.8566
Previous Daily Low	73.1025
Previous Weekly High	74.955
Previous Weekly Low	73.1025
Previous Monthly High	75.6224
Previous Monthly Low	74.5052
Daily Fibonacci 38.2%	73.3906
Daily Fibonacci 61.8%	73.5686
Daily Pivot Point S1	72.8685
Daily Pivot Point S2	72.6084
Daily Pivot Point S3	72.1143
Daily Pivot Point R1	73.6226
Daily Pivot Point R2	74.1167
Daily Pivot Point R3	74.3768

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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