We have bullish engulfing candle on USD/INR weekly chart. If you want go long on USD place a stop below 48.5 and hold. IF USD/INR hits 52.2 it would prove beyond doubt that the decline from 54.5 was corrective and a new high way beyond 54.5 is coming. I'll be looking at the intraday price movements very closely in the coming days.
From a contrarian point - there are quite a few signals that are coming through for the US markets.
1) Larry Fink of Blackrock says Invesstors should be 100% in equities!!
2) Roubini's firm has turned bullish
3) Barron's magazine has Dow 15k on its cover and says even 17k is a possibility!!
So either a decline of significance is about to start for US markets (i would prefer Dow 13k or S&P above 1370 and then a fall) or the decline may have already commenced on Friday.