The USD/INR pair trades lower on Friday in the European session. The pair find it difficult to sustain over the 73.00 mark.
At the time of writing, USD/INR trades at 72.95, down 0.08% for the day.
On the 4-hour chart, the USD/INR pair had been consolidating near the 23.6% Fibonacci retracement, which extends from the low of 72.35, at 72.95. The formation of a double top near the 73.15 mark prompts some corrective price action in the pair.
If price breaks the session’s low at 72.91, then it could find its first support level at the 61.8% Fibonacci retracement at 72.65 followed by the May 31 low at 72.35.
The receding Moving Average Convergence Divergence (MACD) indicator signifies the imminent downside momentum in price. USD/INR bears would be encouraged to explore the levels last seen in March at 72.00.
Alternatively, if price moves higher, then USD bulls could revisit the tops of the above mentioned double top formation in the vicinity of the 73.15 area followed by the 73.40 horizontal resistance level.
Market participants would then gear up for the May 17 high at 73.71.