- USD/INR remains pressured inside short-term falling channel bearish formation.
- Risk reversal drop for second consecutive week, also down the most in two weeks on D1.
- Downward sloping Momentum, sustained trading below 200-SMA add to bearish impulse.
USD/INR stays depressed as sellers battle 73.00 level amid the initial Indian session trading on Friday. In doing so, the Indian rupee pair prints a 12-day-old descending channel on the four-hour chart.
Not only the bearish chart pattern but downbeat signals from the options market and weak Momentum line, not to forget the south-run below 200-SMA, also keeps USD/INR sellers hopeful.
That said, one-month risk reversal (RR) for USD/INR drops for the second week, also marking the lowest daily print in two weeks with -0.075 figures suggesting bearish bets surpass the market bulls.
Even so, the support line of a short-term falling channel, near 72.85, could restrict the quote’s immediate downside.
Meanwhile, an upside break of 73.40 level, comprising the stated channel’s upper line, will have to cross 200-SMA, surrounding 74.20, to recall the USD/INR bulls.
USD/INR four-hour chart
Trend: Bearish
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