USD/INR Price News: Indian rupee stalls its decline near 74.50, not out of the woods yet
- USD/INR fails to find acceptance above the horizontal trendline resistance at 74.30.
- Rending bottom confirmation on Wednesday targets 75.11.
- RSI inches closer towards the overbought region, room to rise for the spot.
USD/INR is easing towards 74.00, having faced rejection just shy of the 74.50 barrier, in the wake of a minor pullback in the US dollar across the board.
Strong US jobless claims eased fears over the Fed’s hawkish surprise, weighing on the US Treasury yields alongside the dollar.
The US dollar jumped alongside the Treasury yields on Fed’s hawkishness, sending the cross to monthly highs of 73.83.
From a near-term technical perspective, the price rallied hard after the rounding bottom upside break, testing the static resistance (orange trendline) near 74.30 en route 74.50.
However, sellers continue to lurk above the 74.30 resistance, knocking off the rates lower. Therefore, acceptance above the latter could re-ignite the bullish momentum, opening doors towards the next horizontal trendline hurdle at 74.64.
Further up, the pattern target measured at 75.11 could be tested.
The Relative Strength Index (RSI) is holding firmer while closing in on the overbought territory, allowing room for more upside.
USD/INR: Daily chart
However, if the selling pressure intensifies from the current levels around 74.22, a drop back towards the earlier resistance now support at 74.00 remains in the offing.
Sellers will then challenge the fierce support at 73.72, the confluence of the 50-Daily Moving Average (DMA) and horizontal trendline connecting previous tops.
USD/INR: Additional levels