- USD/INR buyers prod eight-day-old descending resistance line while defending Friday’s corrective bounce.
- Gradually improving RSI conditions back late rebound but key SMAs challenge Indian Rupee sellers.
- Two-month-old support area appears a tough nut to crack for USD/INR bears.
USD/INR snaps three-day downtrend during a holiday-driven illiquid trading session on early Monday. In doing so, the Indian Rupee (INR) pair jostles with a one-week-old downward-sloping trend line resistance following a sustained bounce off a seven-week-old horizontal support zone.
Given the sluggish MACD signals and a gradually improving RSI (14) line, the USD/INR price is likely to mark another attempt in crossing the aforementioned trend line resistance, around 81.80 by the press time.
However, the 100-SMA and the 200-SMA, respectively near 81.95 and 82.10, could challenge the USD/INR bulls afterward.
Even so, a five-week-old falling resistance line, near 82.40 by the press time, could challenge the Indian Rupee sellers before giving them control.
Meanwhile, USD/INR pullback may find multiple supports near 81.65, a break of which will highlight a seven-week-old horizontal support zone near 81.50 for the pair sellers to watch.
In a case where the Indian Rupee buyers dominate past 81.50, the odds of witnessing the pair’s slump towards the 81.00 round figure and then to the Year-To-Date (YTD) low surrounding 80.90 can’t be ruled out.
Overall, USD/INR consolidates recent losses amid holidays in India.
USD/INR: Four-hour chart
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Trend: Limited upside expected
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