- USD / INR consolidates ahead of next push towards 75.00.
- The spot wobbles inside an ascending channel, waiting for new momentum.
- Bullish RSI, crossing point towards a test of the channel obstacle at 74.75.
USD / INR clings to the recent trading range around the midpoint of 74.00, after ending almost unchanged on Tuesday despite a further rise in oil prices.
However, price consolidation could be seen as the start of a new uptrend for the currency pair as the bulls prepare for a rally to 75.00 and beyond.
USD / INR remains capped below the five-week-old bullish channel upper bound at 74.75, awaiting a resurgence of buying in the coming session.
A daily close above this level is required to release further gains towards the round number of 75.00.
Additionally, buyers will target April highs near 75.60 if the bulls regain full control.
The 14-day relative strength index remains stable, sitting just below the overbought zone, suggesting more room for the upside.
A bear cross, represented by the 21-day moving average (DMA) crossing down the moving average at 100, adds credibility to a higher potential move.
USD / INR: Daily chart
On the other hand, immediate support is seen at Tuesday’s low at 74.42, below which a dip to the 50-day horizontal moving average (DMA) at 73.93 cannot be ruled out.
At this point, the DMA 21 and DMA 100 coincide, making it a strong demand area.
A breakout of the latter on a sustained breakout would validate a bullish breakout of the channel, opening floors towards the 200-DMA horizontal support at 73.61.