USD/INR Price News: Indian rupee’s downside appears limited amid impending bear cross
- USD/INR rises for the second straight day despite falling oil prices.
- US dollar’s gains boost the spot but impending bear cross warrants caution.
- RSI remains below the midline, keeping the upside limited.
USD/INR is building onto Friday’s recovery, as it heads towards 74.50 amid the recent strength in the US dollar across the board.
The covid resurgence in Europe bolstered the dollar’s safe-haven appeal while expectations of hastened Fed’s tapering lifted the Treasury yields, adding further to the greenback’s upside.
The Indian rupee bulls remain unimpressed by the recent correction in oil prices, which helps ease the Balance of Payments (BoP) worries for India.
Technically, USD/INR seems to have found acceptance above the 100-Daily Moving Average (DMA) at 74.30, extending its recovery from weekly lows of 74.02.
However, the bulls remain cautious, as the 14-day Relative Strength Index (RSI) sits beneath the midline, keeping the downside risks exposed.
Additionally, a looming bear cross, with the 21-DMA looking to pierce the 50-DMA from above, could likely limit the pair’s bullish potential.
On the upside, immediate resistance is seen around 74.50, the meeting point of the 21 and 50-DMAs.
USD/INR: Daily chart
Meanwhile, any pullback could see a retest of the 100-DMA, the previous resistance now support. Further down, Friday’s low will be on the sellers’ radars.
If that level gives way, then a drop towards the mildly bullish 200-DMA at 73.89 could be in the offing.
USD/INR: Additional levels