- USD/INR stays offered after confirming a bearish chart pattern.
- 100-SMA can offer intermediate halt during the drop towards 73.90.
- Bearish MACD, downward sloping RSI favor sellers, bulls need to cross 75.10 for fresh entries.
USD/INR holds lower ground near 74.80, down 0.05% intraday, amid an initial Indian session on Monday. The pair recently confirmed a bearish chart pattern, head-and-shoulders (H&S) on the four-hour play.
Not only the H&S confirmation but downbeat MACD and declining RSI line, not oversold, also back USD/INR sellers.
Although 72.30 comes out as the theoretical target of the H&S, 100-SMA near 74.57 and the mid-April low around 74.30 can test the USD/INR bears.
Meanwhile, a corrective pullback beyond the neckline figure of 75.05 should cross the shoulder 2, around 75.10, before recalling the USD/INR buyers.
Following that, 75.50 and the monthly top surrounding 75.56 will be the key levels to watch.
USD/INR four-hour chart
Trend: Further downside expected
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