USD/INR Technical Analysis: Daily chart retains bearish bias despite hawkish Fed

• The Fed minutes released yesterday revealed a growing concern among the officials that policy would have to remain “modestly restrictive for a time.
• As a result, the USD/INR pair is reporting moderate gains at press time, but is struggling to cross the resistance of the trendline connecting the Aug. 9 low and Sept. 21 low, reinforcing the bearish view put forward by the downside break of that trendline on Oct. 16 and the downward sloping 5-day and 10-day exponential moving averages (EMAs).
• The daily chart also shows that pair topped out at 74.50 on the back of the bearish divergence of the relative strength index.
• The pair looks set to test the 50-day EMA in the next few days. The EMA is currently located at 72.07.
• Only a close above 74.00 would neutralize the bearish outlook.

Daily Chart

Spot Rate: 73.50

Daily High: 73.52

Daily Low: 73.42

Trend: Bearish

Resistance

R1: 73.55 (10-day EMA)

R2: 74.02 (Oct. 15 high)

R3: 74.52 (Oct. 11 high)

Support

S1: 73.14 (Oct. 16 low)

S2: 72.07 (50-day EMA)

S3: 72.27 (Sept. 26 low)