USD/INR Price News: RSI divergence favors Indian rupee to print mild gains below 75.00

• USD/INR eases from three-month top, probes three-day uptrend.
• Bearish divergence of RSI challenges pair buyers, 100-SMA support in focus.
• Fresh upside can aim for monthly resistance line before the yearly top.

USD/INR steps back from the highest since late April, down 0.14% intraday around 74.88, as European traders brace for Tuesday’s bell.

With the higher-high formation of the Indian rupee (INR) pair contradicting the lower-high of RSI, a bearish divergence appears on the four-hour chart.

The same joins overbought RSI conditions to trigger the quote’s latest pullback from the multi-day top. However, the further downside will be tested by the 100-SMA level of 74.55.

Should the USD/INR fails to bounce off 74.55, the monthly low of 74.25 and the 74.00 threshold could return to the chart.

On the flip side, fresh buying may wait for a clear run-up beyond the 75.00 round figure. Also challenging the USD/INR bulls is an ascending support line from June 18, near 75.40.

However, a sustained upside past 75.40 will not hesitate to challenge the yearly high close to $75.60.

USD/INR: Four-hour chart

Trend: Pullback expected