The USDINR corrected lower last week, breaking below its 100-hour moving average. However, sellers were unable to extend the decline toward the next key target—the 38.2% retracement of the move up from the mid-November low. That failure allowed buyers to regroup and push the pair higher, lifting it back above the 100-hour MA, where dips over the past day or two have consistently found support.
As long as the price holds above the 100-hour MA, currently near 89.99, the short-term bias remains tilted in favor of the bulls. For sellers to gain any traction, they must push the price back below that level. A break lower would open the door toward 89.79, followed by the rising 200-hour moving average and the 38.2% retracement near 89.656—levels that would need to be broken to shift control back to the downside.
Until that happens, buyers remain firmly in control. On the topside, the high from last week at 90.4370 is the next major target. Above that, the 161.8% Fibonacci extension at 90.5700 stands as a key objective for bullish continuation.
This article was written by Greg Michalowski at investinglive.com.
