For the first time in five weeks, the USD/INR falls below the 10-DMA.
The MACD indicators support bearish momentum, however the important level is 74.00.
To confirm further ruling, bulls need a daily close above mid-April lows.
During the first hour of Tuesday’s Indian trading session, the USD/INR is trading near the weekly low, down 0.05 percent at 74.28. The Indian rupee (INR) pair has broken below the 10-day moving average (DMA) for the first time since early June, within a two-month-old rising wedge bearish chart shape.
In addition to the imminent DMA breakdown, the USD/INR sellers are aided by downward sloping MACD lines crossing the signal indicator and a general bearish bar.
However, with the pair’s continued deterioration, the support line of the indicated wedge, near the 74.00 round figure, becomes a critical level to watch, as a breach of which will not hesitate to attack the yearly low around 72.15.
The late March top around 73.60 and the 73.00 mark may entice USD/INR bears in the autumn.
In the meanwhile, a daily close above the 10-DMA level of 74.31 will restart buying pressure towards the April 19 bottom near 74.55.
It’s worth mentioning that if the USD/INR rises over 74.55, the bearish chart pattern will be tested, as bulls will then target the wedge’s resistance line at 74.85.
Overall, the USD/INR is consolidating recent advances, but bears still need confirmation to reclaim the upper hand.
More weakness is likely in the future./n
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