Tuesday, January 22, 2013

Rupee appreciated against US Dollar exactly as expected! But will it continue???

By By Waves Strategy Advisors. For more information visit www.wavesstrategy.com or write to helpdesk@wavesstrategy.com
Is it really the announcement of deregulation of diesel prices supported the Indian Rupee and lead to sharp move from 54.50 to 53.50 levels? Even if this is the logical reason that can be explained fundamentally but was it possible to trade USDINR pair based on the news announcement!
News or events can trigger short term price movement but cannot be always used from trading perspective. Elliott wave and technical support & resistance levels provided that one leg on downside towards 53.50 was pending. We have been mentioning that if 54.50 breaks we can expect prices to move towards 53.50 levels. Prices today are quoting exactly the same level right now!!!
Many traders and broking houses now expect USDINR to be bearish and can move below 50 levels. People normally extrapolate the trends without having any objective justification. We beg to differ here and do not expect prices to go anywhere near it.
From Elliott wave perspective, USDINR has completed wave B at 55.60 and it is currently moving lower in form of wave C.
The following chart is picked up from our alternate day publication “The Forex Waves STU”published on 21st January 2013. Along with it we cover other INR pairs such as EURINR, GBPINR and JPYINR
USDINR 60 mins chart:

To know the probable target of this wave C and where we expect it to reverse you can subscribe to our currency research report. At important turning points Indian equity and currency markets turn exactly on same day or sometime at same hour.
Do not get carried away in euphoria and get extremely optimistic about Indian Rupee or Nifty.Think objectively and trade wisely which is opposite to the crowd behavior!!!
For more information visit www.wavesstrategy.com or write to helpdesk@wavesstrategy.com

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