- USD/INR stays depressed for third consecutive day inside a choppy range.
- Bearish MACD, short-term falling trend line keep sellers hopeful.
- Bulls may risk entries only on sustained trading beyond 73.30.
USD/INR sellers attack 50-SMA while keeping a five-pip trading range around 72.80 during the initial hour of Tuesday’s Indian trading session. In doing so, the Indian rupee (INR) pair battles short-term key SMA to extend the downside break of one-week-old horizontal support.
Not only the support breakdown and the bearish MACD but a downward sloping trend line from last Wednesday also favors USD/INR sellers to aim for further declines below the 73.00 round figure.
During the fall, 72.50 may offer an intermediate halt before directing the pair bears towards the previous month’s low near 72.30, a break of which will highlight the yearly low near 72.20 and the 72.00 psychological magnet.
Alternatively, an adjacent trend line around 72.80 and 72.90 could probe the corrective pullback towards the 73.00 threshold.
However, USD/INR bulls are less likely to be convinced until the quote stays below the monthly horizontal area surrounding 73.30.
To sum up, USD/INR on the bearish trajectory but awaits fresh clues to drop further.
USD/INR four-hour chart
Trend: Further weakness expected
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