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USD/INR jumped 0.48 percent to 70.87 yesterday. The recovery from the low of 70.40 was likely a result of the RSI reporting oversold conditions in the 4-hour and hourly time frame.  

The outlook, however, remains bearish, as both the 5- and 10-day moving averages (MAs) are trending south and the resistance at 71.145 (high of Tuesday’s bearish candle) is intact.  

The bears, therefore, may feel emboldened and if the descending (bearish) 5-day MA proves a tough nut to crack.  

Put simply, the pair risks revisiting lows below 70.50 hit yesterday.  The decline could be quick if China trade data beat estimates, alleviating concerns of a deeper slowdown in China and the global economy.  

The bearish outlook would be invalidated above 71.145.  

Daily chart

Trend: Bearish