- USD/INR holds onto the previous day’s downside break of the key support despite recent bounce.
- Bearish MACD signals direct pair sellers towards three-week-old support line.
- 50-SMA adds strength to the 79.85 hurdle, RSI challenges the downside.
- Holiday in India, cautious mood ahead of the key US employment data restrict immediate moves.
USD/INR picks up bids to consolidate intraday losses around 79.60 during Wednesday’s Asian session. Even so, the Indian rupee (INR) pair remains bearish for the second consecutive day amid a trading holiday in India. Also acting as a trading filter is the anxiety ahead of the early signal of Friday’s US Nonfarm Payrolls (NFP), namely ADP Employment Change for August.
Also read: ADP Jobs Preview: Three reasons to expect the data to drive the dollar higher
That said, a clear downside break of an upward sloping trend line from August 02, as well as the 50-SMA, joins bearish MACD signals to favor USD/INR bears.
However, the 61.8% Fibonacci retracement level of July 27 to August 02 downside, near 79.50, restricts immediate declines of the quote.
Also acting as the short-term important support is the three-week-old ascending trend line, at 79.40 by the press time.
It should be noted, however, that the RSI (14) is near the oversold territory and hence signals limited downside.
Alternatively, recovery moves need to cross the convergence of the 50-SMA and the previous support line, around 79.85, to convince USD/INR buyers.
Following that, the 80.00 threshold and the recent high around 80.20 appear crucial hurdles to watch.
USD/INR: Four-hour chart
Trend: Limited downside 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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
Gold refreshes all-time highs above $3,000 on escalating geopolitical tensions
Gold price regains the $3,000 mark early Tuesday, refreshing record highs on intensifying geopolitical Middle East tensions. Israel resumes military operations against Hamas in Gaza after the group rejected US proposals for extending ceasefire. Further US-Iran tensions also add to the latest leg up in the safe-haven Gold.
AUD/USD trades with caution below 0.6400 amid MiIddle East tensions
AUD/USD has paused its upsurge, trading with caution in Tuesday's Asian trading. Traders prefer to stay on the sidelines amid intensifying geopolitical risks in the Middle East, reducing the appeal of the higher-yielding Aussie. Meanwhile, the US Dollar finds its feet due to risk aversion.
USD/JPY climbs to two-week high ahead of BoJ-Fed rate decisions
USD/JPY touched a nearly two-week high during the Asian session on Tuesday as the risk-on mood undermined the safe-haven JPY ahead of this week's key central bank event risks. However, divergent BoJ-Fed expectations and rising trade tensions should limit deeper JPY losses.
Canary Capital proposes first-ever Sui ETF following S-1 filing with the SEC
SUI saw slight gains on Monday as Canary Capital submitted an S-1 application with the Securities & Exchange Commission to launch a Sui exchange-traded fund.
Five Fundamentals for the week: Fed leads central bank parade as uncertainty remains extreme Premium
Central bank bonanza – perhaps its is not as exciting as comments from the White House, but central banks still have sway. They have a chance to share insights about the impact of tariffs, especially when they come from the world's most powerful central bank, the Fed.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.