- USD/INR grinds lower following a U-turn from two-week high.
- Sustained trading below 20-DMA, immediate resistance line joins bearish MACD signals to favor sellers.
- July’s high adds strength to 75.00-05 resistance confluence, 14-week-long horizontal area offers extra support.
USD/INR remains on a back foot around 74.85, following the week-start losses, during early Tuesday.
The Indian rupee (INR) pair jumped to the highest in two weeks before dropping back below a three-week-old resistance line and 20-DMA.
The pullback moves gain support from the bearish MACD signals to direct the sellers toward an ascending support line from early September, near 74.73.
Adding to the downside filter is a horizontal area comprising multiple tops marked since late July around 74.60-58.
Meanwhile, 20-DMA and the stated resistance line, respectively around 75.00 and 75.05, join the July month’s high to amplify the importance of the 75.00-75.05 resistance convergence.
Should the USD/INR bulls remain dominant past 75.05, the 75.30-35 area may offer an intermediate halt during the run-up to October’s peak of 75.65.
USD/INR: Daily chart
Trend: Further weakness expected