- USD/INR fades rebound inside a bearish chart pattern near three-month low.
- Sustained break of monthly support line, 100-SMA favor bears.
- Clear break below 73.00 will aim for the fresh yearly low.
USD/INR retreats to 73.09 after positing the heaviest daily gains in 13 days. That said, the Indian rupee (INR) pair remains inside a bearish chart pattern called bear flag while taking rounds to the three-month low flashed last week.
Given the quote’s sustained trading inside a bearish formation, not to forget weakness below the one-month-old previous support and 100-SMA, USD/INR bears are likely to keep the reins.
However, a downside break of the stated flag’s support line, around 72.97, becomes necessary before challenging the yearly low near the 72.17 figure, not to forget the 72.00 threshold.
During the fall, lows marked during May and March, respectively around 72.33 and 72.25, may offer intermediate halts.
Meanwhile, an upside clearance of the flag’s resistance line, near 73.20, will trigger a rebound to the 100-SMA level of 73.76.
In a case where USD/INR bulls keep reins past 73.76, the support-turned-resistance line from early August, close to 74.10, will be the key to watch.
USD/INR: Four-hour chart
Trend: Further weakness expected