USD/INR Price News: Indian rupee looks to recapture 50-DMA at 74.00
- USD/INR falls for the third day in a row after facing rejection at 21-DMA.
- The spot looks to challenge the 50-DMA support at 74.00.
- RSI edges lower below the midline, supporting USD/INR bears.
USD/INR is off the six-week lows of 74.08 but remains heavy for the third straight day on Wednesday.
The Indian rupee gains strength on the back of the domestic indices at record highs and IPO inflows. However, the spot trimmed losses amid a fresh jump seen in the US dollar across the board.
The pair now awaits the US ADP and ISM Services PMI data for fresh trading opportunities.
Technically, USD/INR almost tested the upward-sloping 50-Daily Moving Average (DMA) support at 74.00 on Wednesday, having faced rejection at the mildly bearish 21-DMA cap at 74.50 earlier this week.
The latest leg lower has prompted a breach of the rising trendline support at 74.22. A daily closing below that level is needed to renew the downside momentum.
If the bears manage to take out the 50-DMA barrier, then the spot could test the bullish 100-DMA at 73.85.
Adding credence to the down move, the Relative Strength Index (RSI) looks south below the central line, currently at 45.10.
A four-hourly closing below the 200-SMA is needed to expose the 74.00 mark.
USD/INR: Daily chart
On the flip side, the bulls need to crack a strong resistance zone around 74.40 to take on the 21-DMA upside hurdle.
Recapturing the 21-DMA is critical to negating the bearish bias in the near term.
USD/INR: Additional levels