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  • USD/INR faced rejection at key hurdle at 72.12 on Monday.
  • The pair remains trapped in a contracting range on the weekly chart. 

USD/INR remains trapped in a contracting triangle on the weekly chart. 

The US-Iran tensions put a strong bid under the greenback on Monday, lifting the USD/INR pair to 72.12, the highest level since mid-November. 

The pair, however, failed to take out 72.12 – the upper edge of the resistance – and closed at 71.8630. 

A weekly close or consecutive daily closes above 72.12 are needed to confirm breakout or continuation of the rally from the low of 68.8430 reached in July 2019. A breakout will likely fuel a quick move above 73.00. 

The triangle breakout is unlikely to happen on Tuesday as US-Iran wires have gone quiet in the last 12 hours or so, allowing a pullback in haven assets. For instance, gold is currently trading at $1,558 per Oz, representing a 0.4% drop on the day, having hit a high of $$1,588 on Monday. 

Weekly chart

Trend: Neutral

Technical levels