- USD/INR takes offers to reverse the previous day’s corrective bounce off one-week low.
- Clear downside break of multi-month-old support line, bearish MACD signals favor Indian Rupee buyers.
- Monthly low, 200-EMA lures pair sellers; corrective bounce needs validation from 82.20.
USD/INR renews intraday low near 81.96 during Friday morning in India as markets braces for the mid-ties US data to confirm the recently dovish concerns about the Federal Reserve (Fed).
In doing so, the Indian Rupee (INR) pair reverses the previous day’s rebound from the lowest levels since July 05 while extending the early week’s downside break of an ascending trend line from November 2022, around 82.05 by the press time.
Not only the failure to defend the previous day’s corrective bounce but the bearish MACD signals also weigh on the USD/INR price as it keeps the prior trend line breakdown.
With this, the Indian Rupee buyers are likely approaching the monthly low of 81.75 ahead of poking the 200-Exponential Moving Average (EMA) surrounding the 81.70 level.
Following that, a horizontal area around 81.50 comprising the lows marked in April and March appears the last defense of the USD/INR bulls.
On the contrary, the Indian Rupee’s weakness past the 82.05 level encompassing the support-turned-resistance line isn’t an open invitation to the pair buyers.
The reason could be linked to the presence of convergence of the 100-EMA and 23.6% Fibonacci retracement of August-October 2022 upside, near 82.20.
USD/INR: Daily chart
Trend: Further downside expected
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