USD/INR Price Analysis: Indian rupee buyers stay on the way to 79.40 support

• USD/INR holds onto the previous day’s downside break of the key support despite recent bounce.
• Bearish MACD signals direct pair sellers towards three-week-old support line.
• 50-SMA adds strength to the 79.85 hurdle, RSI challenges the downside.
• Holiday in India, cautious mood ahead of the key US employment data restrict immediate moves.

USD/INR picks up bids to consolidate intraday losses around 79.60 during Wednesday’s Asian session. Even so, the Indian rupee (INR) pair remains bearish for the second consecutive day amid a trading holiday in India. Also acting as a trading filter is the anxiety ahead of the early signal of Friday’s US Nonfarm Payrolls (NFP), namely ADP Employment Change for August.

Also read: ADP Jobs Preview: Three reasons to expect the data to drive the dollar higher

That said, a clear downside break of an upward sloping trend line from August 02, as well as the 50-SMA, joins bearish MACD signals to favor USD/INR bears.

However, the 61.8% Fibonacci retracement level of July 27 to August 02 downside, near 79.50, restricts immediate declines of the quote.

Also acting as the short-term important support is the three-week-old ascending trend line, at 79.40 by the press time.

It should be noted, however, that the RSI (14) is near the oversold territory and hence signals limited downside.

Alternatively, recovery moves need to cross the convergence of the 50-SMA and the previous support line, around 79.85, to convince USD/INR buyers.

Following that, the 80.00 threshold and the recent high around 80.20 appear crucial hurdles to watch.

USD/INR: Four-hour chart

Trend: Limited downside expected