In recent days, the USDINR pair has exhibited a strong bullish trend, reaching new record highs and approaching the 161.8% Fibonacci extension level. This extension has been the logical upside target as momentum steadily increased.

Today, the market tested this extension level for the first time, attracting early selling pressure. This initial hesitation grew more pronounced over the course of the trading session, resulting in a steady and orderly price decline over the past ten hours. This corrective move is the most significant since November 23-24, signalling a noticeable change in the intraday price sentiment.

The downward move has brought the pair closer to a key support zone highlighted in previous analyses. This support is anchored around the swing area at 89.7900 and coincides with the rising 100-hour moving average, currently near 89.7756. The proximity of these two technical levels strengthens their importance as a support area.

So far, the intraday low has been 89.873, leaving the price just above this combined support cluster. The pair is currently trading near 89.8760. For traders considering a buy-the-dip strategy, the zone between 89.7756 and 89.7900 represents a natural level to hold positions against, with a stop-loss placed below a sustained break of the 100-hour moving average.

On the other hand, sellers who initiated positions at higher levels must wait for the price to break and remain below the rising 100-hour moving average to confirm a downside shift. This has been a key hurdle for bears, who have not yet achieved a decisive break. Without it, the broader bullish trend remains intact.

Original Source: Greg Michalowski of investinglive.com