USD/INR Price Analysis: Daily flag losing bullish conviction
29.10.2021, 02:02

USD/INR Price Analysis: Daily flag losing bullish conviction

  • USD/INR is under pressure as the Indian rupee finds strength on domestic basis. 
  • US dollar pressured as central banks start to align and leave US dollar out to hang. 

The price of USD/INR is being capped by a dynamic trendline resistance and the price is starting to shift to the downside. 

The following illustrates the bull's plight from a daily perspective and we zoom in on the 4-hour structure for a closer perspective. 

USD/INR daily chart

The price broke out of dynamic resistance but has so far failed to extend higher and is bounded by 4-hour resistance as follows:

USD/INR  4HR chart

The price is accumulated at the trendline support as per the daily chart but it is tucked beneath the M-formation's neckline near 74.93. Only a break above there and a continuation to take out the 75.20s will leave the bulls in good stead for the upside continuation. 

However, the US dollar is sticky as the euro advances following the central bank decision and concerns of inflation.

DXY daily chart

Additionally,  the Indian rupee and bonds strengthened on Thursday as a drop in global crude oil prices provided a breather and helped calm investor worries over sustained imported inflationary pressures in the domestic economy.

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