Ella 
USD/INR struggled to capitalize on the modest gains over the past two sessions and fell into a tight range in Asia on Friday. Spot prices are currently trading near the 83 mark, with technical indicators indicating minimal resistance to rising prices.
USD/INR stabilized above the technically important 100-day and 200-day SMAs reinforcing its positive outlook. Additionally, the positive oscillator on the daily chart, while declining, favors bullish traders and confirms the positive short-term outlook. Therefore, some follow-on buying is likely to push prices above last week’s swing highs of 83.20-83.25 and towards the 83.45 area, the all-time high hit in August.
On the other hand, any meaningful decline is likely to continue to find support in the 82.80 area or the one-week low, followed by the confluence of the 100- and 200-day SMAs, currently near the 82.45-82.35 area, which should act as a pivot point. If it effectively falls below the latter, it may trigger some technical selling and make the exchange rate prone to accelerate its decline to the 82 mark.
The downtrend may extend further towards the July swing low near the 81.70-81.65 area. If it falls below the above support level, it will indicate that the exchange rate has reached a short-term top, paving the way for a further downward correction. The spot price will then fall towards the intermediate support level of 81.35 and eventually below the 81 area.
