USD/INR Price News: Indian rupee bulls keep reins above 74.00, rising wedge in focus

• USD/INR drops below 10-DMA for the first time in five weeks.
• MACD conditions favor bearish momentum but 74.00 becomes the key.
• Bulls need a daily closing beyond mid-April lows to confirm further ruling.

USD/INR remains on the back foot near the weekly low, down 0.05% around 74.28, amid the initial hour of the Indian trading session for Tuesday. The Indian rupee (INR) pair justifies the downside momentum with a first break below 10-DMA since early June inside a two-month-old rising wedge bearish chart formation.

In addition to the immediate DMA breakdown, downward sloping MACD lines to cross the signal indicator and general a bearish bar also favor the USD/INR sellers.

However, the support line of the stated wedge, near the 74.00 round figure becomes a crucial level to watch during the pair’s further weakness as a break of which will not hesitate to challenge the yearly low surrounding 72.15.

During the fall, the late March’s top around 73.60 and the 73.00 threshold may entertain the USD/INR bears.

Meanwhile, a daily closing past the 10-DMA level of 74.31 will renew the buying pressure towards April 19 bottom close to 74.55.

It’s worth noting that the USD/INR upside beyond 74.55 could challenge the bearish chart pattern, as bulls will then attack the 74.85 level comprising the wedge’s resistance line.

Overall, USD/INR consolidates recent gains but bears need confirmation to retake the controls.

USD/INR: Daily chart

Trend: Further weakness expected