USD/INR Price News: Rupee corrects from monthly tops after Goldman Sachs slashes India’s GDP forecast

Dhwani Mehta FXStreet

The Indian rupee has stalled its two-day winning streak on Wednesday and retreats from four-week highs against the US dollar.

At the time of writing, USD/INR is trading at 73.89, bouncing off four-week lows of 73.72 reached a day before.

The rebound in the cross could be attributed to the broad-based rally in the US dollar after Wall Street stocks tumbled on Treasury Secretary Janet Yellen’s rate hike remarks and lifted a safe-haven appeal of the buck.

However, the latest uptick in the cross is mainly in response to India’s growth forecast downgrade by the US banking giant, Goldman Sachs.

Goldman Sachs said “While activity is likely to rebound from Q3 (July-September) onwards — assuming restrictions can ease somewhat over that time frame — the net result is to lower our FY22 GDP growth forecast to 11.1% (from 11.7% previously), and our 2021 calendar year growth forecast to 9.7% (from 10.5%).”

India is battling the second wave of coronavirus, making it the world’s worst country in handling the covid crisis.

USD/INR technical outlook

The daily chart of USD/INR shows that the price is due for a corrective upside, as the 50-daily moving average (DMA) looks to recapture the 200-DMA, suggesting a potential golden cross.

USD/INR daily chart

Meanwhile, the 14-day Relative Strength Index (RSI) has also rebounded from lower levels, pointing to a likely recovery on the cards.

Recapturing the 74.00 mark is critical for the bulls to unleashing additional recovery gains. Meanwhile, the downside remains cushioned by 73.65, where the 50 and 200-DMAs coincide.

USD/INR additional levels

USD/INR

Overview
Today last price	73.8665
Today Daily Change	0.1366
Today Daily Change %	0.19
Today daily open	73.7299

Trends
Daily SMA20	74.6728
Daily SMA50	73.6113
Daily SMA100	73.3544
Daily SMA200	73.6586

Levels
Previous Daily High	73.963
Previous Daily Low	73.7199
Previous Weekly High	75.2685
Previous Weekly Low	73.9361
Previous Monthly High	75.6321
Previous Monthly Low	73.1696
Daily Fibonacci 38.2%	73.8128
Daily Fibonacci 61.8%	73.8701
Daily Pivot Point S1	73.6455
Daily Pivot Point S2	73.5612
Daily Pivot Point S3	73.4024
Daily Pivot Point R1	73.8886
Daily Pivot Point R2	74.0474
Daily Pivot Point R3	74.1317

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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