- USD/INR struggles for clear direction around two-month low.
- Falling wedge bullish formation, RSI conditions suggest corrective pullback.
- 50-SMA adds to the upside filters, bears need to break 72.70 to keep reins.
USD/INR remains subdued around 72.87 during the initial hour of Tuesday’s Indian trading session. The Indian rupee (INR) pair dropped to the fresh low since late March on Friday, as well as stayed depressed afterward, but the sellers are likely to have lost the momentum inside a bullish chart pattern, namely the falling wedge.
Given the nearly oversold RSI conditions, USD/INR prices are bounce of witness a rebound. Though, the run-up not only needs to confirm the bullish formation by a clear break of 73.00 but also requires a crossing of 50-SMA level near 73.15 to recall the buyers.
Following that, a three-week-old horizontal resistance near 73.70 can probe bulls ahead of recalling the 74.00 round figure on the chart.
Alternatively, the recently flashed multi-day low of 72.77 and the support line of falling wedge close to 72.70 could test the USD/INR during further weakness.
To sum up, USD/INR has been on a downtrend for the last two weeks and the buyers are looking for opportunities.
USD/INR four-hour chart
Trend: Corrective pullback expected