USD/INR: Aims to recapture 77.00 on bullish flag formation

• USD/INR looks to reclaim 77.17 on a bullish flag formation.
• The RSI (14) needs to violate 60.00, which may set a bullish stage for the asset.
• Bears are hopeful below 200-period EMA at 75.73.

The USD/INR pair has been trading sideways in a range of 75.90-76.20 but with a bearish bias amid the absence of a fresh trigger for further guidance.

On a four-hour scale, the USD/INR is trading in a bullish flag formation, which signals a directionless move after a strong upside move and leads to a further movement toward the north if consolidation displays a decisive breakout.

Generally, a rangebound move after a rally denotes initiation of bids by investors who didn’t capitalize upon the initial rally or those participants place longs, which prefer to enter in an auction once a bullish stage is set in.

The 200-period Exponential Moving Average (EMA) is trading at 75.73, which will remain major support for the asset going forward.

The Relative Strength Index (RSI) (14) is oscillating in a range of 40.00-60.00, which signals a lackluster move. However, greenback bulls may be delighted if the RSI (14) violates 60.00.

For the upside, USD/INR needs to surpass March 16 high at 76.43. This will send the pair towards March 14 high at 76.76, which will be followed by March 8 high at 77.17.

On the contrary, bulls may lose control if the asset slips below 200-period EMA at 75.73, which will drag the pair to March 2 low at 75.48. Breach of the latter will push the pair lower to February 25 low at 75.07.

USD/INR four-hour chart