Technical Analysis: Indian Rupee remains capped within longer term trading range

Indian Rupee trades strongly on the day. USD/INR has stayed within a multi-month-old descending trend channel around 82.60–83.15 since December 8, 2023. 

The bearish outlook of USD/INR remains intact in the near term as the pair is below the 100-day Exponential Moving Average (EMA) on the daily timeframe. Furthermore, the downward momentum is supported by the 14-day Relative Strength Index (RSI), which lies below the 50.0 midlines, indicating the downtrend is more likely to resume than to reverse. 

The lower limit of the descending trend channel at 82.60 acts as a potential support level for the pair. A breach of this level could sustain a bearish drop to a low of August 23 at 82.45, followed by a low of June 1 at 82.25.

On the upside, a decisive break above the confluence of the 100-day EMA and a psychological round mark of 83.00 could make its way back up to the upper boundary of the descending trend channel at 83.15. A bullish breakout above 83.15 will expose a high of January 2 at 83.35, en route to the 84.00 round figure