USD/INR technical analysis: Bounces off 21-day SMA, inside a month-long triangle

• The USD/INR pair stays inside a month-old range despite bouncing off 21-day SMA.
• Bullish MACD, sustained trading beyond 70.35 favor buyers.
• 23.6% Fibonacci retracement of July-September upside acts as immediate resistance.

Despite taking a U-turn from 21-day Simple Moving Average (SMA), USD/INR remains inside a month-old symmetrical triangle while taking rounds to 71.30 ahead of Friday’s European session.

However, a 23.6% Fibonacci retracement level of 71.60 can entertain short-term buyers. Also, a downside break below 21-day SMA level of 71.07 can take rest on 38.2% Fibonacci retracement level of 70.95.

On either side breaks of pattern extremes, namely 71.75 resistance and 70.88 support, prices can register larger moves towards 72.35 or 70.35.

It should also be noted that repeated recoveries from 70.35 and the bullish signal from 12-bar Moving Average Convergence and Divergence (MACD) keep buyers optimistic.

USD/INR daily chart

Trend: sideways