Looks heavy after failed breakout

  


  • USD/INR’s failed breakout has shifted risk in favor of a pullback. 
  • The pair risks falling to the psychological support of 71.00.

USD/INR is operating on slippery grounds and could revisit the psychological support of 71.00. 

The currency pair on Wednesday dived out of a contracting triangle on the 4-hour chart, confirming a bearish reversal or an end of the bounce from the Dec. 13 lows near 70.78. 

The breakdown also invalidated the upside break of the trendline connecting Nov. 14 and Dec. 4 confirmed on Dec. 27.

A close above the Dec. 27 high of 71.49 is needed to revive the bullish setup. The pair is currently trading at 71.26, representing marginal gains on the day. 

Daily chart

4-hour chart

Trend: Bearish

Technical levels

 



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