Tech Musings:- Currencies

AUD has broken below 38.2% retracement and is not showing any strength. Looking at the strength in DXY it is completely possible that we may see further correction in AUD. The next support for AUD is around 0.85. Ultimately the target for AUD is around 0.74 – 0.75.

Strength in DXY is expected to continue. DXY recently broke above 23.6% retracement level and is now expected to move towards 90 levels. I accurately predicted the reversal in long term of DXY in my post on June 16, 2011, I wrote, “DXY:- Looks like it will break out of 26 years of down trend and will move up to 100 levels in next 2 -3 years”

 

CAD has also broken above the long term consolidation and will continue its journey towards 1.20 levels.

 

EURO is once again trading dangerously close long term support of 1.28. Looking at the strength in dollar index it is imperative that EURO will break this support and move towards 1.20 levels.

GBP has also corrected severely as expected and has come dangerously close to breaking support. I expect GBP to move towards 1.38 – 1.40 levels.

 

The current upmove in INR is expected to go to 63.50 levels. Looking at the current channel it is quite possible that we will see INR trading at 63.50 before the end of August.  I think the current up move in INR will get over at these levels INR should again go into corrective phase or sideways consolidation.  Ultimate target for INR is around 70 -74 levels. 

Alternatively if INR sustains itself above 64 level we may see a swift up move to 70 -72 . Although I think probability for this scenario is very low.