USD/INR: A break above the 82.95/83.30 hurdle is essential to affirm next leg of uptrend – SocGen

USD/INR has reached the upper end of its consolidation since last year at 82.95/83.30. Economists at Société Générale anlayzes the pair’s technical outlook.

Breakout above 82.95/83.30 can spark next leg up

USD/INR has evolved within a range-bound consolidation since last year in the form of a pattern resembling ascending triangle. This formation contains a flattish upper limit and an ascending lower one; it generally points towards upward potential once a breakout materializes.  

The pair has recently defended the lower limit of the formation near 81.60 resulting in a swift bounce. Graphical hurdle of 82.95/83.30 which is also the upper end of the pattern is a crucial resistance zone. Once this is overcome, USD/INR is expected to embark on next leg of uptrend towards projections of 84.20 and 85.10/85.30. 

First support is at 200-DMA near 82.25.