USD/INR Price Analysis: Bearish view reinforced, eyes recent low

• USD/INR creates a lower high at key resistance. 
• Technical indicators are biased bearish, indicate scope for a drop to 74.50.

USD/INR fell 0.38% to 74.882 on Friday, having faced rejection above 75.38 - a former support-turned-resistance of the head-and-shoulders (H&S) neckline - on Tuesday. 

Essentially, the pair has carved out a lower high along the neckline hurdle, reinforcing the bearish view put forward by the H&S breakdown confirmed on July 2. 

That alongside a below-50 or bearish reading on the 14-day relative strength index and the MACD histogram's fresh move below zero suggests scope for a re-test of the July 6 low of 74.5280. A close below that level would expose support at 72.4025 (Sept. 3 high). 

On the higher side, a close above 75.52 (July 14 high) is needed to invalidate bearish pressures. 

Daily chart

Trend: Bearish

Technical levels