USD/INR is trading below 75.00, consolidating Monday’s steep losses, despite a pause in the US dollar decline across the board.
The recovery in oil prices and easing Omicron fears fail to deter the INR bulls, as they remain on track to extend the correction from yearly highs of 76.59 reached on December 15.
Technically, USD/INR is poised for deeper losses after it closed Monday below the critical support of the 50-Daily Moving Average (DMA), now at 74.96.
The pair have opened Tuesday below the latter, keeping sellers hopeful for another downtick towards the 74.50 psychological level. The mildly bullish 100-DMA appears at that level.
Ahead of that barrier, bears may target the November 29 lows of 74.72.
The 14-day Relative Strength Index (RSI) is inching lower below the central line, backing the bearish momentum in the spot.
Meanwhile, any recovery attempt will be seen only on a sustained break above the 50-DMA support-turned-resistance.
The next upside hurdle for bulls is seen at Christmas Eve’s high of 75.18.
If that level is taken out, then a rally towards the horizontal 21-DMA at 75.49 cannot be ruled out.
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