- USD/INR retreats from 10-week high, snaps two-day winning streak.
- RSI hints at a pullback towards 61.8% Fibonacci retracement level.
- Weekly support line, bullish MACD signals can defend buyers afterward.
- Upside break of 76.20 will aim for December 2021 peak.
USD/INR takes a U-turn from the highest levels since late December 2021, sidelined around 75.80 during the initial Indian trading session on Wednesday.
The Indian rupee (INR) pair’s pullback marks another failure to cross an upward sloping resistance line from January 03, as well as nearly overbought the RSI line.
However, the 61.8% Fibonacci retracement of December-January downside, around 75.50, will challenge the intraday pair sellers.
Should the quote remain bearish past-75.50, a one-week-old support line near 95.30 will test the downside moves ahead of highlighting the 100-DMA and 200-DMA, respectively around 74.85 and 74.45.
Meanwhile, the aforementioned resistance line, at 76.20 by the press time, holds the key to the USD/INR rally towards the latest 2021 peak of 76.59.
Overall, USD/INR bulls have gone a long way and hence a pullback can be expected. Though, bears are far away from taking control.
USD/INR: Daily chart
Trend: Pullback 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
AUD/USD extends gains above 0.6500 after hawkish RBA Minutes
AUD/USD gathers upside momentum above 0.6500 in Tuesday's Asian trading. The pair draws some support from the hawkish RBA Minutes, a softer US Dollar and China's stimulus hopes. The focus now shifts to mid-tier US data and Fedspeak.
USD/JPY pulls back sharply to 154.00 amid looming Japanese intervention risks
USD/JPY is testing bids just above 154.00 in the Asian session on Tuesday after facing rejection at 154.70. There are no catalysts seen behind the latest leg down but looming Japanese internetion remains a risk to the pair's upside. The pair seems to have surrendered to some technical selling.
Gold climbs to one-week top on softer US bond yields, geopolitical tensions
Gold price (XAU/USD) attracted some haven flows after posting its steepest weekly drop in more than three years last week and snapped a six-day losing streak on Monday amid heightened geopolitical tensions.
Bitcoin could see another parabolic run following rising institutional interest
Bitcoin (BTC) began the week positively, rising over 3% above the $91K threshold on Monday. Despite the recent rise, BTC could begin another extended bullish move as top firms are increasing their Bitcoin holdings and potentially adopting it as a reserve asset.
The week ahead: Powell stumps the US stock rally as Bitcoin surges, as we wait Nvidia earnings, UK CPI
The mood music is shifting for the Trump trade. Stocks fell sharply at the end of last week, led by big tech. The S&P 500 was down by more than 2% last week, its weakest performance in 2 months, while the Nasdaq was lower by 3%. The market has now given back half of the post-Trump election win gains.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.