USD/INR Technical Analysis: Slips below 100-day SMA, over 1-week lows

• USD/INR remains under some heavy selling pressure for the second straight session.
• The technical set-up support prospects for an extension of the ongoing corrective slide.

The USD/INR cross extended the previous session's sharp intraday pullback from early September swing high and remained under some heavy selling pressure for the second consecutive day.

The overnight slide below the 23.6% Fibonacci level of the 68.25-72.63 was seen as a key trigger for bearish traders and some follow-through weakness through the mid-European session.

The pair has now slipped below 100-day SMA and is currently hovering around the 71.25-20 strong horizontal support, which if broken should open the room for a further near-term downside.

Meanwhile, oscillators on the daily chart have been losing traction, rather started drifting into the negative territory and support prospects for an extension of the ongoing corrective slide.

Hence, some follow-through selling below the mentioned support has the potential to drag the pair further towards testing sub-71.00 level (38.2% Fibo.)  amid the prevailing risk-on environment.

The downward momentum could further get extended towards retesting December monthly swing lows support near the 70.55-50 region – support marked by 50% Fibo. level.

On the flip side, the 71.55-60 region (23.6% Fibo. level) now seems to act as an immediate resistance, above which the pair is likely to make a fresh attempt towards reclaiming the 72.00 handle. 

USD/INR daily chart