The USD/INR rebound has petered out after falling short of the graphical levels of 75.50. Economists at Société Générale note that the pair is at risk of suffering further losses on a dip below 73.80.

Reclaiming 75.50 is crucial for negating head and shoulders pattern

“USD/INR is drifting towards the 200-DMA near 74.30. Interestingly, the pair is evolving within the right shoulder of a possible Head and Shoulders; a pattern that points towards short-term downside.” 

“Multi-month ascending trend line and the neckline at 73.80 is a crucial support. In case this breaks, USD/INR could unfold an extended pullback.” 

“Reclaiming 75.50 will be crucial for negating this formation.”