- USD/INR stalls the recovery from multi-month troughs.
- A symmetrical triangle breakdown spotted on the hourly sticks.
- Bulls to face stiff resistance around 73.50 region.
USD/INR is trading on the back foot so far this Friday, reversing a part of the three-day recovery from half-yearly lows of 72.75 reached earlier this week.
At the press time, the spot trades around 73.20, having failed to resist above 73.50 once again.
From a technical perspective, the recent recovery and the following consolidation phase has carved a symmetrical triangle on the hourly chart.
The latest leg down in the cross below the rising trendline support at 73.22 has validated the triangle breakdown. That level coincided with the horizontal 50-HMA.
The hourly Relative Strength Index (RSI) points south and heads towards the oversold territory, indicative of more declines.
Therefore, a test of the 73.00 round figure is now on the sellers’ radar. Acceptance below the last will call for a test of the multi-month lows of 72.75.
Any recovery attempts will continue to face stiff resistance at the falling trendline hurdle at 73.47. That level could be a tough nut to crack for the bulls, as the downward-sloping 100-hourly hourly Simple Moving Average (HMA) coincides.
A break above the latter will open doors towards August 31 high of 73.70. The bulls will eye the next upside barrier at 74.00.
USD/INR: Hourly chart
USD/INR: Additional levels
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