USD/INR to suffer a deeper pullback on a break under 78.70/78.50 – SocGen

USD/INR has started evolving within a pause after reaching 80 in July. 78.70/78.50 is short-term support – which should cushion the downside, in the view of economists at Société Générale.  

Uptrend has paused

“Recent attempt at overcoming the 80 hurdle has failed, denoting the possibility of an elongated consolidation. Lower limit of recent range at 78.70/78.50 should be an important support near-term. Only a break below would mean a deeper pullback.”

“Once a move beyond 80 materializes, the pair is expected to resume its uptrend. Next targets are expected to be at projections of 80.30 and 81.00.”