USD/INR edges lower on Tuesday for the second straight session.
Price trades below 50-day and 100-day SMA confluence.
Momentum oscillator holds onto the oversold zone for a longer time frame.
USD/INR extends the previous session’s decline in the early European trading hours on Tuesday. The pair opened higher but failed to preserve the upside momentum.
At the time of writing, USD/INR is trading at 73.60, down 0.06 % for the day.
USD/INR daily chart
On the daily chart, USD/INR is facing a strong resistance barrier below the 100-day Simple Moving Average (SMA) at 73.80 with multiple tops formations since September 8.
USD/INR bears would take the center stage if price sustained below intraday’s low of 73.57. In that case, the first downside target would appear at the 73.40 horizontal support level.
The Moving Average Convergence Divergence (MACD) indicator holds onto the oversold zone. Any downtick in the MACD could push USD/INR toward the 73.10 horizontal support level.
Next, USD/INR bears would likely retest the low of 72.89 made on September’s series commencement.
Alternatively, on the higher side the bulls would first encounter the 100-day SMA at 73.80.
On successful test of the mentioned level, USD/INR would make the next move toward the high made on August 27 at 74.19.
Furthermore, a daily close above the 20-day SMA will enhances the possibility of the 74.50 horizontal resistance level for the pair.
USD/INR additional levels