Following a three-month-old resistance break, the USD/INR has reclaimed a seven-week high.
Buyers of the pair are encouraged by a bullish MACD and a sustained breakout.
Bulls are being probed by a horizontal line dating back to November 2020 and a seven-week-long resistance line.
Before the important 74.18-12 level, the 10-DMA contributes to the downside support.
While revisiting the highest levels since April 27 during early Friday, the USD/INR justifies the upside break of a three-month-old resistance, now support. However, ahead of the important US jobs report, the Indian rupee (INR) bears print a quote of 74.63 against the US dollar, up 0.12% intraday.
Given the pair’s successful break of previously major horizontal resistance, backed by bullish MACD and trading above 10-DMA, USD/INR is bracing for another horizontal hurdle, this time around $74.70, that has been in place since early November.
Any further gains above 74.70, however, will be hampered by an ascending trend line from May 14 near 74.80, a breach of which might return the chart to the 75.00 level.
Meanwhile, a break below the resistance-turned-support level near 74.50 could bounce off the 10-DMA level of 74.30, highlighting the 74.18-12 zone for USD/INR sellers, which includes various levels noted since late December 2020.
It’s worth mentioning that the pair’s downward moves from immediate resistances could be triggered by overbought RSI conditions and a receding positive bias of MACD. However, everything is dependent on the US Nonfarm Payrolls, therefore traders should be careful ahead of time.
Bullish trend/n
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