USD/INR Price Analysis: Early uptick failed to find acceptance above 100-day SMA
- USD/INR witnessed a modest intraday pullback from two-week tops.
- The technical set-up still seems tilted in favour of bullish traders.
The USD/INR cross failed to capitalize on its early uptick and witnessed a modest intraday pullback from near two-week tops. The pair continued with its struggle to sustain above 100-day SMA, around the 71.30 region and has now eroded a major part of the previous session's modest uptick.
Despite the rejection at higher levels, the pair has managed to hold its neck above the 71.00 round figure mark. Against the backdrop of last week's rebound from the very important 200-day SMA, the set-up still seems tilted in favour of bullish traders and support prospects for additional gains.
Meanwhile, technical indicators on the daily chart have fully recovered from the negative territory but are yet to gain any meaningful traction. This warrant some caution before placing any aggressive bullish bets for a possible move 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. The pair then might accelerate the fall towards December swing lows support near the 70.35-30 region before eventually dropping to challenge the key 70.00 psychological mark.
USD/INR daily chart