USD/INR technical analysis: 21-day SMA, 1-month-old falling trendline limit immediate rise

• The USD/INR pair’s bounce off 50% Fibonacci retracement struggles with 21-day SMA.
• 23.6% Fibonacci retracement, four-week-old descending trend-line add to the resistance.
• 100/200-day SMA confluence becomes the key support.

The USD/INR pair’s latest recovery struggles with the 21-day simple moving average (SMA) as the quote seesaws near 71.28 during the pre-European open session on Thursday.

Even if the pair manages to close beyond 21-day SMA level of 71.25, 23.6% Fibonacci retracement level of July-September upside, at 71.60, and a downward sloping trend-line since September 03 near 72.00 could challenge buyers.

Though, pair’s successful run-up past-72.00 might not refrain from aiming the previous-month top close to 72.65.

On the downside, 71.00 and 70.35 can entertain short-term sellers ahead of highlighting the 100-day and 200-day SMA confluence near 70.15/16.

Further, pair’s declines below 70.15 could take rest around 69.80 prior to targeting late-July tops around 69.35.

USD/INR daily chart

Trend: pullback expected