- USD/INR stays firmer around intraday high, up for the second consecutive day.
- Steady RSI suggests continuation of trading inside short-term range.
- Monthly resistance line, horizontal area from late June become strong levels to watch.
USD/INR stays mildly bid for the second day, extending bounce off three-week low, while picking up bids to 74.20 during early Wednesday.
In doing so, the Indian rupee (INR) pair buyers jostle with the 50-day EMA amid steady RSI conditions.
While rebound from the strong support near 74.00, comprising multiple levels marked since late June, joins firmer RSI conditions to keep the buyers hopeful, a downward sloping trend line from July 21, close to 74.50, challenges the pair’s further upside, if it crosses immediate EMA hurdle of 74.20.
It’s worth noting that the upside break of 74.50 needs validation from June’s top surrounding 74.90 to regain the 75.00 threshold.
On the contrary, a daily closing below 74.00 will make the USD/INR prices vulnerable to drop towards June 02 top near 73.30.
Overall, USD/INR is likely to remain sidelined between the 74.00 round figure and 74.50.
USD/INR: Daily chart
Trend: Further recovery expected