Indian Rupee, USD/INR, Nifty 50, Technical Analysis - Talking Points
- The Indian Rupee has been appreciating, but it faces key levels ahead
- USD/INR Falling Wedge in focus, will the broader uptrend resume?
- This is as the Nifty 50 Index has been rising, now facing key resistance
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![USD Forecast](https://a.c-dn.net/b/2o6KQV/500x707Forecast-USD.png)
![USD Forecast](https://a.c-dn.net/b/2o6KQV/500x707Forecast-USD.png)
Indian Rupee Technical Analysis
The Indian Rupee has been on the offensive against the US Dollar since March. Now, USD/INR is facing its next key test to resume the near-term downtrend. A bullish Falling Wedge chart pattern seems to be brewing. A breakout above could open the door to extending the broader uptrend since 2021. This is as prices were unable to pierce through the 100-day Simple Moving Average.
Immediate resistance seems to be the 23.6% Fibonacci extension at 76.088, with the 38.2% level above at 76.584. Clearing the latter would then expose the all-time high at 77.159. In the event of a turn lower, immediate support seems to be the 100-day SMA. Falling under the latter exposes the February low at 74.36 before the current-year low comes into focus at 73.766.
USD/INR Daily Chart
![USD/INR Daily Chart](https://a.c-dn.net/b/3Bzfdx/Indian-Rupee-and-Nifty-50-Rise-Face-Key-Technical-Tests-in-the-Week-Ahead_body_Picture_6.png)
Nifty 50 Technical Analysis
Unsurprisingly, accompanying gains in the Rupee has been a push higher in India’s benchmark stock index, the Nifty 50. It is up over 13% since finding a bottom in early March, guided higher by a rising trendline from then. Now, the index faces its next key test, a falling trendline from October 2021. Confirming a breakout above the latter may open the door to extending gains to the all-time high.
Getting there entails clearing the current 2022 peak at 18350. Still, a breakout under the rising trendline risks opening the door to a turn lower. With that in mind, immediate support seems to be the 61.8% Fibonacci retracement at 17482 before the midpoint kicks in at 17136. Further losses would then open the door to revisiting the current 2022-year low at 15671.
![](https://a.c-dn.net/b/0YPMDo/logo-stripe.png)
![Equities Forecast](https://a.c-dn.net/b/32JkY8/500x707Forecast-Equities.png)
![Equities Forecast](https://a.c-dn.net/b/32JkY8/500x707Forecast-Equities.png)
Nifty 50 Daily Chart
![Nifty 50 Daily Chart](https://a.c-dn.net/b/0YZzNi/Indian-Rupee-and-Nifty-50-Rise-Face-Key-Technical-Tests-in-the-Week-Ahead_body_Picture_7.png)
--- Written by Daniel Dubrovsky, Strategist for DailyFX.com
To contact Daniel, use the comments section below or @ddubrovskyFX on Twitter
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