Thursday, March 20, 2014

CURRENCY - EW UPDATE

Hi Friends,

Lets looks at some Currency Pairs which might be ready for a Large Trend Reversal in comings weeks and months.

US DOLLAR INDEX
US DOLLAR INDEX
US Dollar Index has made a Double Bottom near 79 and reversed Up. With Positive Divergence on RSI, US Dollar Index has broken out of short term Falling Wedge. With this the Correction in Wave 2 or X seem to have completed. Further breakout above 81 will be indication for move towards 85 and perhaps 90 and above in months to come.

EUR-USD
EUR-USD
With US Dollar Index turning up Euro is bound to Fall. Currency pair EUR-USD made a Long Term Top in 2008 near 1.60. Since then it has been correcting in a huge downtrend Channel which seems to be Double Zigzag correction. Currently it seem to have completed 'x' inside larger Y of DZZ near 1.40 which is also weekly Channel Resistance. With RSI Negative Divergence signaling reversal break below 1.36 would be indication of short term trend reversal. Further break below 1.32 would indicate huge downside towards lower end of Channel near 1 or 0.90 in year ahead.

USD-INR
USD-INR
USD-INR is in a Long Term Up Trend. Currently it seems to be correcting in Wave IV which is likely nearing End. USD-INR has weekly Channel support near 60 which is unlikely to break. With US Dollar Index turning up Rupee is expected to weaken taking USD-INR Higher in it's 5th Wave Up. Breakout above 63 would be indication of start of 5th Wave. Wave 5 could take USD-INR towards 70-74 in next few months or perhaps much Higher in a year ahead.


Thanks & Regards,

Harsh Dixit.

1 comments:

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