Technical Analysis: Indian Rupee to continue trading in the longer-term range of 82.60–83.10

Indian Rupee trades softer on the day. USD/INR extends the range-bound theme within a multi-month-old descending trend channel around 82.60–83.10 since December 8, 2023. 

Technically, USD/INR resumes its bullish bias as the pair bounces above the key 100-day Exponential Moving Average (EMA) on the daily timeframe. The upside momentum is supported by the 14-day Relative Strength Index (RSI) which lies in the bullish territory above 50.0 midline, supporting the buyers for the time being. 

If the pair sustains its climb past the strong resistance level near the 100-day EMA and a psychological mark at 83.00, the next upside barrier will emerge near the upper boundary of the descending trend channel at 83.10. Further north, the additional upside filter to watch is 83.35 (high of January 2), en route to the 84.00 round mark.

On the downside, a low of March 14 at 82.80 acts as an initial support level for USD/INR. The potential contention level is located at the lower limit of the descending trend channel at 82.60. A breach of this level could extend the pair’s downtrend to 82.45 (low of August 23) and then 82.25 (low of June 1).