- USD / INR was seen consolidating its recent strong gains to multi-month highs.
- The setup favors bullish traders and supports the prospects for additional earnings.
The pair USD/INR it consolidated its recent gains to the highest level since August 24 and balanced between tepid gains / minor losses, around 74.50 early in the American session.
Investors now seemed reluctant to place an aggressive directional bias amid growing mistrust about the actual outcome of Tuesday’s US presidential election. This, in turn, limited the USD / INR pair near a resistance marked by 38.2% of the Fibonacci level from the recent corrective slide of 77.82-72.76.
With that said, a sustained advance, six-month-old downtrend line resistance, and a subsequent move beyond the confluence region of the 100/200 day SMAs favor bullish traders. The constructive outlook is bolstered by the fact that the oscillators on the daily chart remain in bullish territory.
Some subsequent purchases beyond the mentioned barrier, around the 74.70 region, will be seen as a new trigger for bull traders. The momentum could push the USD / INR pair above the key psychological level of 75.00, to test the 50% Fibonacci level around the 75.30-35 zone.
On the other hand, any significant pullback could be seen as a buying opportunity near 74.00. The latter coincides with the 23.6% Fibonacci level, which should now act as a key point for traders and help determine the next leg of a directional move for the USD / INR pair.
A convincing break below will negate any short-term bullish bias and trigger some aggressive technical selling. The USD / INR pair could fall towards 73.00. Bearish momentum could extend further towards the recent lows, around the 72.75 region.
Daily chart
Credits: Forex Street
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