USD/INR Price Analysis: Indian rupee bulls struggle to cheer break of weekly support line

  • USD/INR consolidates losses above 75.00 following its drop to the one-week low the previous day.
  • Break of short-term support line keeps the sellers hopeful.
  • 200-bar SMA, key Fibonacci retracements add to the upside barriers.

USD/INR retraces from one-week low to 75.13 while heading into the European session on Thursday. The Indian rupee pair snapped four-day winning streak on Wednesday after breaking an ascending trend line from June 06. However, nearness to the 75.00 round-figures seems to offer the latest bounce to the quote.

A sustained break of short-term support line, now resistance, defends bears unless the USD/INR prices rise past-75.40. Even so, a confluence of 200-bar SMA and 50% Fibonacci retracement of June 19 to July 06 fall, around 75.50/55, will be a tough nut to crack for the bulls.

Should there be a clear upside past-75.55, 61.8% Fibonacci retracement level of 75.75 and June 18 low near 76.10 could return to the charts.

Meanwhile, a downside break of 75.00 can avail 74.75 as an intermediate halt before attacking the monthly low close to 74.52. Additionally, the pair’s extended weakness below 74.52 will target the early-March bottom around 73.60.

USD/INR Daily chart

Trend: Bearish

 

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