- 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.