Technical Analysis: Indian Rupee remains capped in the longer-term range-bound theme

Indian Rupee trades strongly on the day. USD/INR remains confined within a multi-month-old descending trend channel between 82.70 and 83.20 since December 8, 2023. 

In the short term, USD/INR keeps the negative bias unchanged as the pair is still below the 100-day Exponential Moving Average on the daily timeframe. Furthermore, the 14-day Relative Strength Index (RSI) holds in the negative zone below the 50.0 midline, supporting the sellers for the time being. 

The initial support level for the pair is seen at the lower limit of the descending trend channel at 82.70. A breach of this level might convince USD bears to extend the pair’s downtrend near a low of August 23 at 82.45, followed by a low of June 1 at 82.25.

In the case of a bullish trading environment, the critical upside barrier will emerge at the 83.00 mark, portraying the confluence of the 100-day EMA and a psychological round figure. Further north, the next hurdle to watch is a high of January 2 at 83.35, and finally at 84.00.