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  • USD/INR struggles for direction near short-term key resistance.
  • Normal RSI conditions, nearness to 21-day SMA keeps the hope of another pullback below 76.00.
  • A two-month-old falling trend line adds to the upside barrier.
  • April low becomes the crucial support below 75.00.

USD/INR trims the early-day gains to 75.54, up only 0.04% on a day, during the pre-European session on Monday. In doing so, the quote steps back from 21-day SMA.

Considering the normal RSI conditions and the pair’s repeated pullback from near-term key SMA, the pair may decline further towards the monthly low of 74.98.

However, April 30 bottom surrounding 74.95 can restrict the quote’s further downside, if not then March 27 trough close to 74.40 could return to the charts.

On the upside, a clear break above 21-day SMA level of 75.57 will escalate the recovery moves towards a descending trend line from early April, currently around 75.85.

In a case where the bulls manage to cross 75.85 on a daily basis, 76.00 and May month top of 76.20 will become their favorites.

USD/INR daily chart

Trend: Pullback expected