USD/INR Price Analysis: Indian rupee bears need validation from 76.60 for further ruling
- USD/INR bulls take a breather after refreshing 18-month top the previous day.
- Overbought RSI conditions, ascending trend line from November 2020 challenge bulls.
- Pullback moves remain tepid unless breaking monthly support line.
USD/INR struggles for a clear direction around the highest level since June 2020 during early Thursday morning in Europe. In doing so, the Indian rupee (INR) pair defends the 76.00 level, taking rounds to 76.20-25 at the latest.
Despite rising to the fresh multi-month high, USD/INR prices couldn’t cross an upward sloping resistance line from November 2020, not to forget the inability of providing a daily closing beyond the June 2020 peak of 76.51. Also teasing the bears to take risk of entry is the overbought conditions of the RSI.
While the pullback move may recall the 76.00 threhold, an ascending support line from November 18, near 75.73, will challenge the pair sellers afterward.
In a case where the USD/INR sellers conquer the stated support line, tops marked during April and October 2021, near 75.65-60, will be a tough nut to crack for them.
Alternatively, a daily closing beyond the stated resistance line, at 76.60 by the press time, will initially eye the 77.00 round figure before directing the USD/INR buyers to the year 2020 peak of 77.82.
USD/INR: Daily chart
Trend: Pullback expected