- USD/INR’s daily chart shows a descending triangle breakdown.
- The bearish pattern has opened the doors for test of 200-day SMA line.
USD/INR looks south with the daily chart reporting a bearish continuation pattern.
The pair fell by 1% on Monday – the biggest single-day decline since April 29 – confirming a downside break of a descending triangle pattern on the daily chart.
The breakdown gained credence on Tuesday as the buyers failed to penetrate the former support-turned-hurdle at 74.50 and indicates that the sell-off from highs near 77.00 seen in April has resumed.
As such, the 200-day simple moving average (SMA), currently at 73.86, could soon come into play.
Supporting the bearish case is the below-50 reading on the 14-day relative strength index and the slow stochastic indicator.
A close above Monday’s high of 74.92 is needed to invalidate the bearish outlook.