USD/INR Technical Analysis: Inverted hammer on 50-day MA support
- USD/INR may gap higher on Monday on upbeat US Nonfarm Payrolls data.
- A close above Friday's high would confirm a bullish reversal pattern.
USD/INR may witness a bounce on Monday, having created an inverted hammer at the 50-day moving average support on Friday.
The US economy added 266,000 jobs in November, beating the median estimate of 156,000 additions by a big margin and the jobless rate edged down to a 50-year low, the Nonfarm Payrolls report showed on Friday.
With the upbeat data, traders priced out prospects of a 25 basis point rate cut in 2020, sending the US dollar higher across the board.
The payrolls data was released post-INR trading hours. Put simply, the USD/INR market is yet to price in the upbeat data and the pair will likely gap higher on Monday.
A close above 71.31 would confirm a bullish hammer reversal pattern on the daily chart. On the downside, acceptance below the 50-day average at 71.11 may invite stronger selling pressure. The sellers failed to keep the pair below the average in the previous two trading days.