USD/INR Price Analysis: Indian Rupee drops back to 82.80 support inside bearish wedge
- USD/INR picks up bids inside fortnight-old bearish chart pattern.
- Immediate resistance line, bearish MACD signals test recovery moves inside rising wedge.
- 50-SMA, looming bull cross on MACD restrict immediate downside.
- Slower grind to the north more likely amid firmer RSI, sustained trading beyond the key SMAs.
USD/INR picks up bids to snap a two-day south run as the Indian Rupee (INR) pair prints mild gains around 82.80 during early Tuesday morning in Europe.
In doing so, the Indian Rupee pair bounces off the 50-SMA, as well as the weekly support line, near 82.60 by the press time.
However, bearish MACD signals and a downward-sloping resistance line from Friday, close to 82.85 challenge the USD/INR bulls.
Following that, the upper line of the stated rising wedge bearish chart formation near 83.10 will be on the USD/INR bull’s radar.
Overall, USD/INR remains bullish but the upside room appears limited.
Meanwhile, a clear break of the 82.60 support confluence including the 50-SMA and a one-week-old ascending trend line could quickly drag the USD/INR bears toward the 200-SMA level surrounding 81.80.
In a case where the USD/INR pair remains bearish past 81.80, the monthly low near 81.00 and November’s bottom surrounding 80.35 will gain the market’s attention. If the USD/INR bears dominate past 80.35, the 80.00 psychological manget should act as the last defense of the bulls.
USD/INR: Four-hour chart
Trend: Limited upside expected