USD/INR Price News: Braces for high volatility on broadening triangle formation

• USD/INR braces high volatility going forward on broadening triangle formation.
• The RSI (14) is holding above 40.00, which claims not a bearish case anymore.
• Bulls need to overstep 75.38 on a sustained basis to reach 75.84.

The USD/INR pair has opened with a bearish opening gap on Tuesday around 75.30. The major has witnessed a plunge on Monday after reclaiming Thursday’s high around 75.82. On Tuesday, the asset is hovering around the 50-period Exponential Moving Average (EMA), which is trading at 75.34.

On an hourly scale, USD/INR is forming a broadening triangle which brings wild movements in the spot prices. Usually, the broadening pattern is diverging in nature and drops fake breakouts on either side, which is why traders face a lot of stop triggers. Therefore, the wild swings in further trading sessions will keep investors on their toes.

The Relative Strength Index (RSI) (14) is holding 40.00 on the lower side, which signals that the asset is not bearish anymore.

The 50-period and 200-period EMAs are scaling higher and indicate a bullish bias but need more confirmation from other filters.

For an upside move, USD/INR needs to surpass Tuesday’s high at 75.38, which may send the major higher towards Monday’s average traded price at 75.59 and Monday’s high at 75.84 respectively.

On the contrary, bears can take the charge if the major slips below Monday’s low at 75.25 towards the 200 EMA at 75.12, followed by February 22 high around 75.00.

USD/INR hourly chart

USD/INR additional levels