Ella 
USD/INR attracted some bargain hunting as it hit a one-week low near 82.80 or a one-week low during the Asian session on Tuesday and now appears to have ended its three-day losing streak. However, spot prices remain below the 83.00 round-figure mark and the near-term bias appears to be in favor of bullish traders.
The positive outlook is reinforced by the fact that the USD/INR pair is holding firmly above the technically significant 100-day and 200-day simple moving averages (SMA). Additionally, positive oscillators on the daily chart (although they have lost some traction) suggest that spot prices face minimal upside resistance.
Sustained strength above the 83.00 mark would reaffirm the pair’s constructive setup and bring it back to last week’s swing highs, around the 83.20-83.25 area. After that comes the 83.45 area, the all-time high hit in August, which if decisively broken would serve as a new trigger for bulls and pave the way for more gains.
On the other hand, weakness below the $82.80-$82.75 area is likely to continue to attract some bargain hunting and remain capped near the $82.40-$82.30 confluence formed by the 100-day and 200-day moving averages. The latter should be a key point, and once below, USD/INR will easily accelerate its decline towards the 82.00 round figure.
Some follow-through selling around the July monthly swing lows of 81.70-81.65 would suggest that spot prices have formed a near-term top and pave the way for a deeper corrective decline. USD/INR is likely to weaken further towards the 81.35 intermediate support and eventually sub-81.00 levels.
