• USD/INR snaps four-day uptrend, extends pullback from three-week top.
• MACD teases bulls above short-term EMA, descending trend line from October 12 guards immediate upside.

USD/INR bounces off intraday low to 74.54, down 0.05% on a day during early Thursday. In doing so, the Indian rupee (INR) pair keeps the previous day’s pullback from the highest levels since November 03.

While a U-turn from the multi-day high justifies the pair’s inability to provide a daily close beyond a six-week-old resistance line, the quote’s sustained trading beyond 20-day EMA keeps buyers hopeful. Also favoring the USD/INR bulls is the MACD line that recently marked a bullish cross and inches towards the positive region.

That said, the pair buyers will seek a daily closing past the stated trend line resistance, around 74.62 by the press time, to extend the weekly run-up.

Following that, the 75.00 threshold and the monthly high near 75.15 may probe the USD/INR upside ahead of the previous monthly peak of 75.65.

Alternatively, a clear downside break of the 20-day EMA level of 74.45 will direct the USD/INR sellers towards an ascending support line from early September, near 74.08 by the press time.

Also acting as important support levels are the lows marked during the last week around the 74.00 round figure and the monthly trough of 73.85.

USD/INR: Daily chart

Trend: Further upside expected