- USD/INR looks to extend losses in the Asian trading session.
- Bulls face stiff resistance near the 74.50 critical resistance area.
- Momentum oscillator remains neutral indicates the wait-and-watch approach.
USD/INR edges lower in the Asian trading hours as the fresh week begins. The pair opened higher but failed to preserve the momentum.
At the time of writing, USD/INR is trading at 74.25, down 0.07% for the day.
USD/INR daily chart
-637652882198263568.png)
On the daily chart, after making a high at 75.01 on July 19, the pair has been under constant selling pressure.
Bears become dominant as price slips below the 50-day Simple Moving Average (SMA) at 74.35. The first downside target appears to be at a 74.15 horizontal support level.
Further, a daily close below the 74.00 key trading level, would allow USD/INR bears to testify 73.75 horizontal support level followed by the low made on June 16 at 73.25.
Alternatively, the Moving Average Convergence Divergence (MACD) indicator trades near the midline with a neutral stance. Any uptick in the MACD would make the meeting of the previous day’s high at 74.47 horizontal resistance level a possibility.
In doing so, next the bulls would attempt to recapture the 74.75 horizontal resistance and move toward the high of July 20 at 75.00.