- USD/INR fades bounce off six-week low amid bearish MACD signals.
- Key DMA confluence restricts short-term advances before monthly resistance line.
- 61.8% Fibonacci retracement adds to the downside filters.
USD/INR consolidates the biggest daily gains in a month around 74.10 during early Wednesday.
The Indian rupee (INR) pair bounced off 200-DMA the previous day but fades recovery below a convergence of the 100-DMA and 50-DMA of late.
Given the bearish MACD signals and the pair’s inability to keep the rebound above the key DMA, USD/INR prices are likely to remain pressured.
Hence, the 74.00 threshold seems immediate support to watch before the 61.8% Fibonacci retracement (Fibo.) of August-October upside, around 73.95.
Should the quote drops below 73.95, the 200-DMA level of 73.83 will regain the market’s attention ahead of the mid-September lows close to 73.35.
Meanwhile, 50% Fibo. near 74.25 guards the quote’s immediate upside ahead of the stated DMA confluence around 74.30.
In a case where USD/INR bulls cross the 74.30 key hurdle, 74.70 and a one-month-old resistance line near the 75.00 round figure may flash on their radar.
USD/INR: Daily chart
Trend: Further weakness expected
This article was originally published by Fxstreet.com.Read the original article here.
