USD/INR bounces off intraday low during three-day downtrend.
Confluence of one-month-old ascending trend line, 21-DMA guards immediate upside.
Bears need validation from 61.8% Fibonacci retracement to retake controls.

USD/INR bears take a breather during a three-day fall, around 74.39, amid the initial Indian session on Thursday.

The cross-currency pair dropped to the 12-day low the previous day after breaking convergence of 21-DMA and an ascending support line, now resistance, from June 22.

Although bearish MACD and failures to stay beyond the 75.00 threshold keep USD/INR sellers hopeful, 61.8% Fibonacci retracement level of April-May fall, near 74.35, challenges the quote’s immediate declines.

Following that, the late June’s swing low near 74.05 and the 74.00 round figure may entertain the pair bears before multiple tops marked in mid-May surrounding 73.70 gain the market’s attention.

Meanwhile, recovery moves will be boring below 74.50, a break of which could recall the 75.00 round figure to the chart.

However, a daily closing beyond the same becomes necessary for the USD/INR bulls to aim for the yearly top near 75.65.

Trend: Further weakness expected

Read More