The eight-day long narrowing price range seen in USD/INR’s 4-hour chart could be breached to the higher side, as the widely-followed 5- and 10-day moving averages (MAs) have produced a bullish crossover.
Supporting that bullish case if the positive crossover between the 50- and 100-hour MAs and the risk-off tone in the global financial markets. Range breakout above 69.13, if confirmed, would open the doors to 70.00.
A downside break of the trading range, however, would imply a resumption of the sell-off from highs above 71.00 seen at the end of February and could yield a re-test of and possibly a drop below the recent low of 68.35. Note that the 14-day RSI is now hovering in the undersold territory (50-30), meaning there is enough room for a slide to 68.35 on potential range breakdown.
As of writing, the pair is trading at 69.01, having clocked a high of 69.10 earlier today.
4-hour chart
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Trend: Bull breakout likely
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