CURRENCY UPDATE

Hi Friends,

It is generally observed that Currency Movement gives Early Indication of Equity Market Direction.

Here are some Currency Charts which are indicating a short term Reversal on the cards.

DOLLAR INDEX

Lets 1st look at the Dollar Index Chart which is villain for all the equities, commodities & other currencies with which it is paired. The Dollar Index which has Long way to go to 89-90 has completed its 5 Wave Advance and is setting up for Reversal in Global Equities along with itself. It could retrace back to 61.8% of this advance to 80.49.

EUR/USD

 Now lets look at this Other Equally Important Global Currency which is paired with Dollar. The EUR/USD seem to have completed its 5 wave decline & is setting up for Pull Back Rally up to 1.29 i.e. 61.8% of this decline.

Finally lets look at this USD/INR chart. While INR making New Low Nifty has not yet made the New Low. But with Friday's turmoil in Global Markets Nifty is likely to finally make New Low around 4731 before it could Reverse.

USD/INR

Well this USD/INR Chart also seem to have completed 5 Wave Advance and is setting up for a Reversal. It could Retrace back to 52.85 or 51.95.

Now with the Currencies Signaling Reversal; Relief Rallies in Equities across the Globe are also due on the Cards.

So let’s Wait & Watch

Thanks & Regards,

Harsh Dixit.