INR has corrected significantly from the
high of 68 and has completed 61.8% retracement from the top. When I wrote my
last post on INR 2nd
January 2014 it was trading at around 62.37 and I was
expecting it to move towards 64 levels.
The up move in INR was terminated at 63 and it fell below stop loss of
61.25 and made a new low of 59.60.
If we look at
the current chart of INR it has taken support of the channel line which coincides
with 61.8% retracement level.
Similarly if we look at the second chart
which is a daily chart of INR it had take support at lower end of the daily
channel line. If INR continues to trade above lows of 59.60 it may see a temporary
reversal and move towards 62.75 level.
Longer term downtrend in INR will start only if INR moves above 63.50
level.
Similarly if we look at GBP chart it is
facing resistance at 1.382% retracement level.
Similarly Euro is also trading at the resistance of multiyear trend
line. It seems that both these
currencies will starts to weaken form here and US dollar seems to be in a long
term reversal mode.
Summary:-
1.
If INR moves above 60.50 sell INR with a stop
loss of 59.50 and target of 62.75. CMP is 60.17
2.
Sell GBP with a stop loss of 1.6900.
