In my previous post on INR on 28th August 2013 I wrote, “I feel that the current rally in INR is over stretched and
we will see INR appreciating sharply in next one week. I don’t think INR is now
ready to move to 80 levels.”
As expected INR corrected sharply and is
currently trading at 63.84 levels and has appreciated by almost 8% in last ten
days. If we look at the first chart of INR we can see that retracement levels
for the current rally are at 63, 61.25 and 59.50 levels. I expect the pull back
in INR to continue in next few days.
If we look at the second chart in INR we can
see that last time when INR appreciated 30% from 45 to 58 levels it
consolidated for a period of one year before breaking out again. INR has
similarly given a 30% upmove and should do time and/or price retracement for
this move. This means that either we will have a long period of consolidation
or sharp pull backs in INR or both.
Ultimately INR will move towards 80 levels in
next two or three years.
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