- USD/INR takes the bids to refresh intraday high, rises the most in two weeks.
- Clear upside break of six-week-old trend line, 200-SMA joins upbeat RSI to favor buyers.
- 50% Fibonacci retracement will validate the run-up towards 75.00.
USD/INR jumps the most in a week, refreshes intraday high to 74.70 during Friday’s European morning.
The Indian rupee (INR) pair’s run-up could be linked to the successful break of a descending trend line from October 12 and 200-SMA. Given the absence of overbought RSI, the upside momentum has further room towards the north.
However, 50% Fibonacci retracement (Fibo.) of October-November declines, around 74.75, acts as a validation point for the quote’s run-up towards the 75.00 threshold.
Following that, a monthly high of 75.20 and an October 18 peak of 75.37 may entertain USD/INR bulls before directing them to the last month’s top near 75.65.
On the contrary, a daily closing below the stated resistance-turned-support line of 74.58 will aim for the weekly support line near 74.45.
It should be noted, however, that the USD/INR weakness past 74.45 will make it vulnerable to decline towards the 74.00 round figure, comprising the November 18 low.
USD/INR: Four-hour chart
Trend: Further upside expected