• USD/INR extends the previous day’s rebound, approaches top of fortnight-old trading range.
• 50-DMA adds strength to the range support, descending resistance line from late July adds to the upside filter.
• Sluggish MACD, RSI hints at further grinding of the pair.

USD/INR picks up bids to 79.65 during the initial Indian session on Thursday, up for the second consecutive day. Even so, the rupee (INR) pair remains inside a fortnight-long trading range between 79.00 and 79.70.

That said, the USD/INR pair’s latest run-up approaches the stated range’s upper line, at 79.70. However, sluggish MACD and RSI hint at a lack of further upside momentum.

Even if the quote rises past 79.70, a downward sloping resistance line from July 28, at 79.85, will challenge the USD/INR bulls.

In a case where the pair remains firmer past 79.70, it can aim for the 80.00 threshold, as well as the recent high surrounding 80.20.

Alternatively, the pullback could retest the 79.50 level before revisiting the 50-DMA support around 79.10.

However, the USD/INR pair’s further weakness will be challenged by the stated channel’s lower line, at 79.00. Following that, the monthly low near 78.40 could lure the pair sellers.

In a case where the USD/INR prices remain weak past 78.40, the bears could gain control.

USD/INR: Daily chart

Trend: Limited upside expected