- USD/INR trades sideways near 85.41, pushing prices into a zone of consolidation.
- Moving averages are converging tightly, indicating low volatility and a potential breakout.
- Support between 84.23 and 83.69 is crucial for the long-term bullish structure to hold.
The Indian Rupee (INR) is showing signs of stability against the US Dollar (USD) on Thursday, with the USD/INR pair trading near 85.41. This level reflects consolidation within a broader correction range following the volatile price action in May.
The market is currently digesting gains after reaching an all-time high of 93.27 earlier in the month and is now anchored between defined Fibonacci levels and Simple Moving Averages (SMA).
The USD/INR daily chart shows the pair trading sideways, hovering around 85.41, just beneath the critical 78.6% Fibonacci retracement level at 85.74, calculated from the May high of 93.27 to the low of 83.69.
The 10-day and 20-day SMAs, at 85.44 and 85.26, respectively, are converging tightly, signaling a lack of directional conviction. The Relative Strength Index (RSI) at 50 reflects neutrality.
USD/INR daily chart
On the weekly timeframe, USD/INR remains in a sensitive zone, trading around 85.40, which is almost exactly aligned with the 10-week simple moving average (SMA) at 85.39.
Above, the 78.6% Fibonacci level at 85.74 continues to act as firm resistance, reinforced by the 20-week simple moving average (SMA) at 86.10.
USD/INR weekly chart
Zooming out to the monthly chart, USD/INR’s bullish momentum peaked in February with a high of 88.17, pushing the RSI above 84, a clear indication of overbought conditions.
USD/INR monthly chart
This was followed by a two-month retracement that reset RSI below 70. In May, bullish momentum returned, briefly driving the pair to a new record high of 93.27 before sellers aggressively reversed the move.
Prices have since pulled back and are currently holding just above the 20-month SMA at 84.23. This level, along with the May low of 83.69, forms a strong support zone. If it holds, the long-term uptrend remains intact; if breached, the risk of a broader reversal increases.
