USD/INR Price Analysis: Charts point to continued strength in INR

• USD/INR has dropped by over 1% in the past five days. 
• The INR could appreciate further to 74.00 per US dollar.

USD/INR looks south, having declined from 75.37 to 74.528 over the past five trading days. 

The daily chart shows head-and-shoulders breakdown and lower highs, lower lows setup. The 5- and 10-day simple moving averages (SMA) are trending south, indicating a bearish setup. Further, the 50- and 100-day SMAs have produced a bearish crossover. 

As such, the odds appear stacked in favor of a deeper drop to 74.00. A violation there would expose the 200-day SMA currently located at 73.4318. 

A close above the 10-day SMA at 74.98 is needed to invalidate the bearish setup. 

Daily chart

Trend: Bearish

Technical levels