Technical Analysis: Indian Rupee remains capped within the 82.70–83.20 range in the longer-term

Indian Rupee trades in negative territory on the day. USD/INR remains stuck within a multi-month-old descending trend channel of 82.70–83.20 since December 8, 2023. 

The USD/INR bearish short-term outlook remains unchanged as the pair trades below the crucial 100-day Exponential Moving Average (EMA) on the daily chart. Furthermore, the 14-day Relative Strength Index (RSI) is below the 50.0 midline, suggesting the path of least resistance level is to the downside. 

The first support level of the pair will emerge at the lower limit of the descending trend channel at 82.70. A decisive break below the mentioned level could see a drop to the next downside target at a low of August 23 at 82.45 and a low of June 1 at 82.25.

On the flip side, the immediate resistance level is seen at the psychological round mark and the 100-day EMA at 83.00. Any follow-through buying will send USD/INR on track towards testing the upper boundary of the descending trend channel at 83.20, en route to a high of January 2 at 83.35, and finally a round figure at 84.00.