Tuesday, January 13, 2015

Emerging market bonds


The first chart is monthly chart of Emerging Market bond ETF. If we see in this chat it looks like a long term reversal pattern. Once EMB breaks below 100 levels we may see a multi month bear market in emerging market bonds. 


Similarly if we look at the Asian Dollar index we can see that Asian currencies have already broken below multi-week support.  The next support of Asian currencies is at 106 levels. Once that support is taken out most of the Asian currencies will see sharp depreciation against USD. 




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