USD/INR Price News: Indian rupee drops to test critical daily support
- USD/INR is under immense pressure and takes on critical support.
- Bulls will need to step up at this juncture or face liquidation below 74 the figure.
USD/INR has been on the offer for the best part of the past several weeks and it has now moved in on a critical level of daily support as illustrated in the chart below. A break here will open prospects of a significant downside continuation which leaves the 74 area vulnerable and 73.50 exposed.
USD/INR daily chart
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The bullish flag is not looking so bullish any longer, at least should the support structure that has been drawn above be taken out. With that being said, we could see a resurgence in the US dollar, but this will now depend on the prospects of interest rate hike timings from the Federal Reserve.
The week will climax with critical data in Nonfarm Payrolls on Friday. That data could throw the bulls a lifeline. In doing so, the price would be expected to move in towards the 74.80 resistance area which will then act as a possible last defence for a break of the trendline resistance.