USD/INR Technical Analysis: hit lowest since Sept. 4, more losses ahead

• The USD/INR dropped to the lowest in over two months on Tuesday. The currency pair printed an intraday low of 71.28 earlier today – the level last seen on Sept. 4 – and was last seen trading at 71.32. The pair could extend the decline to the immediate support of 70.80, albeit after a minor bounce, technical charts indicate.

Daily chart

• The pair closed below the key support of 71.53 (Sept. 14 low) yesterday, bolstering the already bearish setup, as represented by the descending 5- and 10-day exponential moving averages (EMAs), 14-day relative strength index of 33.00 and lower highs and lower lows pattern.

4-hour chart

• Over on the 4-hour chart, the RSI is at its lowest since June, indicating the sell-off is overdone.  As a result, a corrective bounce could be in the offing, before further downside unfolds.
• The overall bearish view would be aborted if the corrective bounce, if any, ends up pushing the pair above the descending (bearish) 10-day EMA, currently lined up at 72.07.