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  • USD/INR trim intraday gains as traders step back from the key resistance line.
  • 21-day and 50-day SMA adds to the upside barriers.
  • Bearish momentum gains more acceptance amid weak RSI.

USD/INR drops top 72.96 while stepping back from the intraday high during the initial Indian trading session on Friday. In doing so, the pair seems to register another failure in crossing the trend line resistance from December 23. The downside move also gains support from sluggish RSI and sustained trading below the key SMAs.

However, the Indian government budget is up for publishing on February 01 and hence keep the pair traders cautious.

As a result, the USD/INR bears are likely to attack the monthly low unless providing a daily closing beyond the stated resistance line, at 72.98 now.

Following that, 21-day and 50-day SMA levels, respectively around 73.10 and 73.45, could precede the monthly top of 73.56 to challenge the USD/INR bulls.

On the contrary, a sustained downside below the monthly low of 72.81 will eye for September bottom surrounding 72.75 whereas the late-2019 tops close to 72.20 may lure the sellers afterward.

USD/INR daily chart

Trend: Bearish