Tech Musings Currencies

 

The first chart is of Dollar index. As my readers will know I have been constantly bullish on Dollar since June 2011. Since then I have been regularly being bullish on Dollar but it had not shown any sustained move. But I think all this will change in the year 2014. In the quarterly chart you can see dollar index is forming a morning star. I am expecting sustained upmove in DXY in current quarter and entire year.

 

 

The second chart is that of CAD. CAD is on the verge of a long term breakout from inverse head and shoulder pattern. If it sustains above 1.08 levels it may depreciate sharply in coming year.

In my last post on Euro on 28^th October 2013 I have mentioned that Euro faces stiff resistance at 1.38 levels. It seems that euro is now all set to start its downward journey.   Traders can sell Euro with a stop of 1.40 and target of 1.30 and below.

Last chart is that of INR. On 16^th November 2013 I wrote, “INR moved up sharply in last two weeks and made a high of 63.9075. I had given a buy call on INR in my previous post on 28^th October 2013 when INR was trading at 61.46. If we look at the given chart I think there is one more up leg in INR which will take INR to 65 levels.  At this point in time, I am not sure whether INR will move up to 70 or fall back again to 61 or 59 from there.”

INR topped out at 64 levels and moved back to 61 levels and consolidate at that level. If we look at the current chart INR seems poised for another move to 64. Again at this point it is not clear whether we will break 64 or not.

Summary

1.       Dollar index all set for upmove

2.       Euro and CAD are looking weak

3.       Sell Euro at CMP stoploss of 1.40 and target of 1.30 and below

4.       Sell INR at current levels stop loss of 61.25 and target of 64.