Indian rupee rebounds further to test 21-DMA


  • USD/INR falls for the second straight day, as bulls fail to resist above 100-DMA.
  • The spot clings to 21-DMA support amid a broad US dollar weakness.
  • A pullback in WTI price also helps comfort the INR bulls.

USD/INR remains on the defensive for the second day in a row this Thursday, keeping its range below 74.50.

The pair tracks the US dollar weakness while the Indian rupee cheers a pullback in oil prices from seven-year highs.

The greenback holds the lower ground amid a return of the risk appetite on China’s policy easing, although the March Fed rate hike expectations will continue to support the dollar bulls in the coming days.

At the time of writing, the spot is trying hard to defend the 21-Daily Moving Average (DMA) support, now at 74.41, having failed to find acceptance above the horizontal 100-DMA at 74.59.

The pair’s recovery rally from four-month troughs of 73.73 faltered near 74.70 on Wednesday.

The 14-day Relative Strength Index (RSI) has entered into the negative zone, below the midline, justifying the latest downturn in the price.

If the 21-DMA support gives way, then a test of the horizontal 200-DMA at 74.27 will be inevitable.

A sustained break below the latter could revive the recent bearish momentum towards the multi-month lows.

USD/INR: Daily chart


On the flip side, daily closing above 100-DMA will take on USD/INR towards 50-DMA at 74.84.

The level to beat for bulls is envisioned at 75.00, which will guard the further upside.

USD/INR: Additional levels

 




Source link


Leave a Reply