Last week, the Dollar Index breached an important support, the 80-79.5 region (highlighted), negating one possible wave count for a stronger and higher USD. The markets seem to suggest that Ben Bernanke was not just merely using empty rhetoric when he said deflation will not be allowed to occur. The reserve currency is getting debased. […]
After a bout of choppy trading in the last 2 weeks, the USDINR pair closed above its 200 DMA. The point to take note here is that the pair crossed this level after registering a island reversal and is a pointer to further strength for the dollar against the rupee in the coming days.
Today’s price action in the Indian currency has put a question mark on the bullish price objective of 41.5-42.0 that we have been maintaining since last year. In today’s trading, the USDINR closed above an intermediate term trend-line (see chart) that had kept the rupee’s strength going. Looking at the Ichimoku charts, the currency has overcome the “cloud” […]
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 […]