- The pair failed to capitalize on the previous session’s positive move.
- Break below 71.65-60 support should pave the way for further slide.
After an initial uptick to levels beyond the 72.00 handle, the USD/INR pair came under some renewed selling pressure and has now eroded a major part of the previous session’s gains.
The downtick, also marking the third day of a negative move in the previous four, dragged the pair back closer to a support marked by 38.2% Fibonacci level of the 70.53-72.37 move up.
The mentioned region coincides with 200-hour SMA and is closely followed by a two-week-old ascending trend-line support, which if broken might be seen as a key trigger for bearish traders.
The pair then could accelerate the slide towards the 71.20 region – 61.8% Fibo. – and the downward trajectory could further get extended towards testing sub-71.00 levels in the near term.
On the flip side, the 71.95-72.00 region now seems to act as an immediate resistance, which if cleared has the potential to lift the pair back towards monthly tops around the 72.35-40 region.
Some follow-through buying might negate any near-term bearish bias and set the stage for a move back towards challenging September monthly peak – around the 72.65 region.
USD/INR 1-hourly chart
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