In my last post on INR on 11th
September 2013, I wrote, “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.”
INR made a low of 61 and it seems like it is
now bottoming out. It is quite probable that INR will move towards 63 – 65
levels from here. The stop loss for the long trade will be 60.50.
DXY has corrected severely contrary to my expectation.
But now it seems that DXY has bottomed out. If we look at the chart of DXY it’s
nearing the bottom of the channel. It looks quite likely DXY will reverse from
here. It’s my gut feeling that the bull market in USD will start next year.
If we look at the chart of Euro, we can see
that Euro is trading at near long term resistance.
Similarly, GBP is also trading near long term
resistance. Connecting all these dots it seems likely that USD is made an
intermediate term bottom and may move up sharply from current levels.
Summary:-
1.
Expecting sharp rally in USD against Euro, GBP,
Yen and AUD
2.
Expecting INR to depreciate to 63 -65 levels
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