USDINR has been making new highs since past few trading sessions. Trading in Forex markets can be difficult due the violent gaps unless the bigger trend is known. We have been able to capture the trend of USDINR when it was near 71.80 and today the currency pair made a new high near 72.50 levels.
Below is the chart we published in our monthly report,” The Financial Waves Monthly Update”wherein we mentioned the level of 72.50 and it moved exactly as expected.
USDINR Weekly chart spot – Anticipated as on 7th September, 2018
USDINR daily chart (spot) happened as on 11th September
USDINR is again going to take the blame along with Crude as and when equity markets reverses. Keep reading the newspaper and you will find a huge euphoria soon to be created around these two assets.
Indian Rupee has continued to depreciate against dollar since the beginning of 2018. This has direct positive impact on IT and Pharma sector as majority of this company’s earnings are in US dollars. On the other hand, companies which are major importers will be highly affected.
On weekly chart as per Neo wave perspective, prices are moving within the last leg of Diametric pattern. Wave F has completed on downside and currently wave G is ongoing. Detailed explanation of this Diametric pattern is given in the July 2018 issue.
Fibonacci extension guideline: This is a common method in technical analysis which is use to drive support and resistance areas. Fibonacci Extension is most effective when prices are at new highs or new lows. On daily chart, we have taken Fibonacci extension of wave v with wave i and as wave v looks to be an extended wave it can tend towards 1.618 to 2.618 times of wave i. We can see here that 1.618 times projection is already taken out and now next level to keep an eye on is at 72.50 which is 2.618 times of wave i.
In short, Indian rupee is likely to depreciate further and it is nowhere stopping soon. Some sideways action cannot be ruled out but eventually prices will head higher. Move towards 72.50 is expected in short term basis. On medium term basis, there is room for move towards ….as wave G of Diametric pattern tends towards equality with wave A.
Also as mentioned earlier both Crude and USDINR will be the major asset to be blamed when equity markets reverses but if Nifty continues to again move higher the focus will change to liquidity or global stability! News will keep changing but will not help trading or investing. Interesting, isn’t it!!!
Happened: USDINR moved as expected and made new a high near 72.50 levels. This shows how accurately Elloitt wave works.
To know what will be the next move of USDINR and other domestic currency pairs for short term views subscribe to our report under the name of “The Forex Waves STU”. Also avail 2 days free trail for calls.
For long term view, subscribe to our monthly report under the name of “The Financial Waves Monthly Update”.
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