- USD/INR fails to see follow-through buying from yesterday’s up move.
- RSI technical reading also shows indecision.
- One-month-old support line encourages the bulls.
USD/INR was trading in the red with a loss of 0.12 Percent in the early hours of Indian trading. The pair hovering around 73.38 was not able to sustain the upside momentum seen yesterday and has formed chart patterns pointing to underlying indecision.
The spinning tops formed on Monday and Tuesday along with the RSI conditions suggest sideways movement and only slim chances of a trend change.
USD/INR is staying above a falling trendline from September 24, around 73.27, giving hopes to the bulls to restart the attack on the monthly high near 73.65.
Such a bullish move would be checked by 50 Percent & 61.8 Percent Fibonacci retracement from August 20-September 01 downside, respectively around 73.95 and 74.25.
USD/INR falling below 73.27 means 73.00 will be in play for the bears – who will be encouraged to target 72.75: the previous month low.