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  • USD/INR drops to one week low, nears short-term key support confluence.
  • The immediate falling trend line, 61.8% Fibonacci retracement challenge buyers.

While extending its pullback from 61.8% Fibonacci retracement of September month declines, USD/INR revisits one week low as it traders around 71.00 ahead of Monday’s European session.

The pair nears 70.91/90 support confluence including 23.6% Fibonacci retracement and three-week-old rising trend line. Also doubting the pair’s further weakness is downbeat conditions of 14-bar Relative Strength Index (RSI).

As a result, pair’s bounce off immediate falling trend-line, at 71.40, can’t be denied, a break of which could further escalate recovery towards 61.8% Fibonacci retracement level of 71.77.

Should prices manage to remain strong above 71.77, 72.33 and September month high around 72.63 will lure the bulls.

On the downside, pair’s extended south-run past-70.90 can take rest around 70.70 and 70.63 ahead of retesting September month low of 70.37.

USD/INR 4-hour chart

Trend: pullback expected