USD/INR Price Analysis: Bulls await a sustained move beyond 71.30 strong hurdle
- USD/INR gains some traction but struggles to extend the momentum beyond 71.30 resistance.
- Any meaningful pullback might continue to attract dip-buying near the 70.60 region (200-DMA).
The USD/INR cross held on to its mildly positive tone through the mid-European session on Tuesday, albeit continued with its struggle to capitalize on the move further beyond the 71.30 horizontal resistance.
Given that the pair last week managed to defend the very important 200-day SMA, a sustained move beyond the mentioned hurdle might be seen as a key trigger for bulls and set the stage for additional gains.
Meanwhile, technical indicators on the daily chart haven't been supportive of any firm near-term direction and warrant some caution before placing any aggressive bets for the pair's next leg of a directional move.
Hence, it will be prudent to wait for some strong follow-through buying before traders start positioning for any further appreciating move back, possibly back towards reclaiming the 72.00 round-figure mark.
On the flip side, any meaningful pullback below the 71.00 handle might continue to attract some dip-buying near the 70.65-60 region, which if broken should pave the way for an extension of the recent slide.
Below the said support, the pair is likely to accelerate the fall towards December swing lows support near the 70.35-30 region before bears eventually aim towards challenging the key 70.00 psychological mark.
USD/INR daily chart