Forex: USD/INR trades medium-term bullish above 50.91

Forex: USD/INR trades medium-term bullish above 50.91

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Forex: USD/INR trades medium-term bullish above 50.91 - Commerzbank

FITITOL--> FXstreet.com (San Francisco) - The Indian rupee was again range-bound on Thursday, consolidating after recent falls against the greenback as India's economic outlook remains of concern, given problems such as a widening current account deficit and slowing growth.

Axel Rudolph, Senior Technical Analyst at Commerzbank warns the currency is likely to remain under pressure in the near-term. “While [USD/INR] stays above the March peak at 52.05, the 78.6% Fibonacci retracement of the December-to-February decline at 53.56 should be reached,” he says.

The analyst expects the pair to stay medium term bullish while trading above the 50.91 April low. Last quoted up 3.3% on the month at 52.55, Mr. Rudolph identifies support around the 61.8% Fibonacci retracement at 52.54, the 50% Fibonacci retracement at 51.82 and at the 38.2% Fibonacci retracement at 51.10.