USDINR: 80.30/80.00 is crucial support zone – SocGen

USDINR has experienced an extended uptrend after breakout above the key graphical levels of 77. Economists at Société Générale expect the pair to retrace to test the 80.30/80.00 support zone.

Break above 83.30 essential to affirm next leg of uptrend

“USDINR has completed a streak of ten consecutive higher monthly closes in 2022 denoting a slightly stretched move. This is not a reversal signal, however, a short-term pause is not ruled out.”

“The pair has evolved within a pattern resembling Head and Shoulders in daily timeframe chart. This projects targets near 80.90. Multi month ascending trend line and upper limit of the triangle during July / August at 80.30/80.00 is expected to be an important support zone.”

“A break above 83.30 would be essential to affirm next leg of uptrend. If this crossover materializes, the pair could inch higher towards further projections of 84.20 and 85.90/86.30.”