- The daily USD / INR chart shows a descending triangle breakdown.
- The downtrend opened the doors for the 200-day SMA line test.
The USD / INR is looking south with the daily chart showing a bearish continuation pattern.
The pair fell 1% on Monday – the biggest one-day drop since April 29 – confirming a break down of a descending triangle on the daily chart.
The blackout gained credibility on Tuesday as buyers failed to break through the old support that became a hurdle at 74.50 and indicates selling from the near 77.00 highs seen in April resumed.
As such, the 200-day Simple Moving Average (SMA), currently at 73.86, may come into play soon.
The below 50 reading of the 14 Day Relative Strength Index and Slow Stochastic Indicator supports the bearish case.
A close above Monday’s 74.92 high is needed to invalidate the bearish outlook.