As can be seen from the weekly chart of INR, the currency has closed under the 200 period moving average after a period of consolidation. In Aug 2008, when INR went through a similar consolidation and closed above the 200 MA level, we saw a brisk 10% move (weakening of INR) in the next 2 months. Today, the picture is almost like an inverse mirror image (see circled region). Will the Rupee see a brisk move this time in the other direction (strengthening)?
Data and Chart courtesy: Bloomberg.