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  • USD/INR was seen consolidating its recent strong gains to multi-month tops.
  • The set-up favours bullish traders and supports prospects for additional gains.

The USD/INR pair consolidated its recent gains to the highest level since August 24 and seesawed between tepid gains/minor losses, around mid-74.00s through the early North American session.

Investors now seemed reluctant to place any aggressive directional bias amid growing wariness about the actual outcome of Tuesday’s US presidential election. This, in turn, capped the USD/INR pair near a resistance marked by the 38.2% Fibonacci level of the 77.82-72.76 recent corrective slide.

That said, a sustained breakthrough a six-month-old descending trend-line resistance and a subsequent move beyond 100/200-day SMAs confluence region favour bullish traders. The constructive outlook is reinforced by the fact that oscillators on the daily chart are holding in the bullish territory.

Some follow-through buying beyond the mentioned barrier, around the 74.70 region, will be seen as a fresh trigger for bullish traders. The momentum might then push the USD/INR pair further beyond the key 75.00 psychological mark, towards testing 50% Fibo. level, around the 75.30-35 region.

On the flip side, any meaningful pullback might still be seen as a buying opportunity near the 74.00 mark. The latter coincides with the 23.6% Fibo. level, which should now act as a key pivotal point for traders and help determine the next leg of a directional move for the USD/INR pair.

A convincing break below will negate any near-term bullish bias and prompt some aggressive technical selling. The USD/INR pair might then slide back towards the 73.00 round-figure mark. The downward momentum could further get extended towards the recent swing lows, around the 72.75 region.

USD/INR daily chart


Technical levels to watch