USD/INR Technical Analysis: Trades with modest losses, holds steady above mid-71.00s

• USD/INR bulls failed to capitalize on the early uptick to over one-week tops.
• The 72.00 confluence barrier might continue to cap the immediate upside.

The USD/INR cross failed to capitalize on its early uptick to over one-week tops and is currently trading with modest losses, around the 71.70-65 region.

The intraday uptick remained capped in the wake of upbeat Chinese manufacturing data and fizzled out rather quickly ahead of the 72.00 round-figure mark.

The mentioned handle marks a confluence hurdle, comprising of the top end of a descending trend-channel and 23.6% Fibonacci retracement level of the 70.50-72.37 positive move.

Hence, it will be prudent to wait for a sustained break through the said confluence barrier before traders start positioning for any further appreciating move in the near-term.

On the flip side, the 100-hour SMA, around mid-71.00s, might continue to act as immediate support, below which the pair is likely to accelerate the slide towards the 71.25-20 region.

The latter represents 61.8% Fibo. level and is closely followed by the trend-channel support, around the 71.15-10 region, which if broken should pave the way for a further slide.

The pair then could extend the downfall further below the 71.00 round figure mark towards challenging early-November swing lows, around mid-70.00s.

USD/INR 1-hourly chart