USD to INR saw a major dip during the past few months towards $64.00. Let’s see if Indian Rupee can hold gains versus the US Dollar or not in the near term.
- The US Dollar declined towards $64.00 against the Indian Rupee in March 2017 from the $68.50 high.
- There is a solid support base forming near $64.00 on the daily chart of USD/INR.
- The pair is currently attempting a break above a major resistance near $65.00 and struggling to clear it.
USD to INR Chart Analysis
Looking at the daily chart of USD/INR, there are clear gains for Indian Rupee. The Indian currency enjoyed a good ride, as the pair dipped from the $68.50 high to trade near $64.00.
However, the $64.00 support is holding well and preventing any further declines in the near term.
So, the main question here is whether Indian Rupee can retain gains versus the US Dollar or not? Can there be a rise back towards $66.00 or even $68.00?
The answer to the question can be analyzed looking at the daily chart of USD/INR. There are a few important points to note.
First, the pair has formed a decent support above $64.00, which may be not be easy to break. Second, there is a break above a bearish trend line at $64.60.
Third, there is a monster resistance formed near $64.90-65.00. A bearish trend line on the same chart is at $65.00, which also coincides with the 23.6% Fibonacci retracement level of the last drop from the $68.50 high to $63.96 low.
Lastly, the 100-day simple moving average (SMA) is near the $64.90 level, which is another major barrier for buyers of the US Dollar.
So Can US Dollar Break Higher Versus the Indian Rupee?
The chances are high, but we need a daily close above $65.00 to call it a real break. As long as the price is below $65.00, it would be hard for buyers to take a big stand.
On the downside, we can continue to monitor $64.00. A close below the same could ignite a move towards $64.00.
I think we may continue to see ranging moves before the price makes the next move either above $65.00 or below $64.00.
Trade safe traders and enjoy the ride!!!