USD/INR Price Analysis: Indian Rupee approaches three-week-old resistance near 81.60
- USD/INR remains pressured at weekly low, down for third consecutive day.
- Sustained trading below 50-SMA keeps Indian Rupee buyers hopeful.
- Buyers have a bumpy road to witness in case of surprise return, 82.10 is the key hurdle.
USD/INR holds lower grounds near 81.70 as it prods weekly low during a three-day downtrend. In doing so, the Indian Rupee (INR) pair cheers broad US Dollar weakness ahead of the key US Nonfarm Payrolls (NFP).
That said, the pair’s sustained trading below the 50-bar Simple Moving Average (SMA) joins the downbeat MACD signals and mostly steady RSI (14) line to underpin the bearish bias.
With this, the Indian Rupee buyers appear all set to poke an upward-sloping support line from mid-April, near 81.60.
However, the RSI line is near 45.00, which in turn suggests bottom-picking around the key support line and restricts the quote’s further downside.
In a case where the USD/INR pair drops below 81.60, the previous monthly low of around 81.50 will be crucial as it holds the key for the quote’s fall towards the yearly low, marked in January at around 80.90.
Alternatively, USD/INR rebound remains elusive unless the quote breaks the 50-SMA hurdle of around 81.80.
Following that, a downward-sloping trend line from April 19, close to 81.80, and an eight-day-old resistance line near 81.90, could prod the pair buyers.
Above all, USD/INR remains bearish below the seven-week-old resistance line, near 82.10 at the latest.
USD/INR: Four-hour chart
Trend: Further downside expected