- USD/INR fell by 2.41% last week, the biggest weekly drop since December 2017.
- The weekly chart suggests scope for a sell-off to rising trendline support.
USD/INR looks south, having carved out a bearish marubozu candle last week with a 2.41% drop. That is the biggest weekly decline since December 2018.
A bearish marubozu candle occurs when trades control the price action from day’s open to close. In other words, the bearish marubozu signals the market’s determination to dominantly trade in the downward direction.
As such, a drop to the trendline connecting January 2018 and July 2019 lows looks likely. At press time, the trendline support is located at 72.1820.
Supporting the bearish case is the descending 5- and 10-day simple moving averages (SMA) and a violation of the 50-week SMA.
Indeed, the daily chart indicators are reporting oversold conditions. Hence, a temporary bounce may be seen before a decline to the 2-1/2-year-long rising trendline.
Weekly chart
Trend: Bearish
Technical levels
