USD/INR Price Analysis: Struggling to capitalize on breakout
USD/INR broke higher from a sideways channel on Friday, but so far, the bulls have failed to make their presence felt. The currency pair fell by 0.10% on Monday, forming an inverted bearish hammer. That candle indicates the bounce from lows near 70.70 has likely ended.
Further, the relative strength index (RSI) on the hourly chart has dived out of an ascending trendline. The pair, therefore, risks falling to support at 70.80. A violation there would expose the recent low of 70.67.
USD/INR stays above 71.00 as IMF blames India for downbeat growth forecasts
USD/INR takes the bids to 71.15 while heading into the European session on Tuesday. The pair recently benefited from the International Monetary Fund’s (IMF) latest growth forecast. Declines in Indian consumer sentiment also helped the pair to deviate from the previous day’s drop.
The IMF cites India as the largest contributor to the global headwinds that led the international institute to downwardly revise its growth forecasts. The Washington-based entity announced a 0.2% cut in the GDP forecast of the emerging market and developing economies from 3.7% in 2019 to 4.4% in 2020 and 4.6% in 2021. The organization also downsides India’s economic growth forecast to 4.8% from the 6.1% expansion it projected in October.
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