USD/INR technical analysis: 70.30/28 becomes key support on the weekly chart

• USD/INR follows the range between 38.2% and 23.6% Fibonacci retracement of 2018 upside.
• 21/50-bar SMA confluence restricts the pair’s near-term declines.

Although USD/INR has recently lost momentum, the pair trades well above the key support while taking rounds to 70.95 ahead of Friday’s European session.

The pair observes the range between 23.6% and 38.2% Fibonacci retracement of 2018 upside since early-August, which in turn defies calls of any major moves till the prices offer a weekly close either above 72.20 or below 70.45.

Also challenging the bears is 70.30/28 confluence region including 21 and 50-bar Simple Moving Average (SMA) on the weekly chart.

In a case where the quote slips below 70.28 on a weekly basis, 70.00 round-figure could offer an intermediate halt prior to pleasing sellers with 69.80 and 50% Fibonacci retracement level of 69.08.

Meanwhile, an upside clearance above 72.20 can avail 72.80, 73.30 and 74.00 as buffers ahead of targeting December 2018 top surrounding 75.00.

USD/INR weekly chart

Trend: sideways