Past week saw the break of 83 and went on to hit the high of 83.42 and closed at 83.12. The buying interest continues as the market fears breach of 83.50. It is evident from the market action that the declines are used as opportunity to hedge the Imports. Now that the markets would be trying to grab anything below 83.00. As expected the potential breach on the upside happened and the spike towards 83.30 and beyond was achieved. Expect the range of 82.80-83.50 to hold for the week and there could be choppy moves within this range. A close outside this range requires re-assessment of risk/direction and target.
A few more observations:
As noted in the previous blog, continue to keep the following input for quick reference.
A few more observations:
As noted in the previous blog, continue to keep the following input for quick reference.
- The 82.75-83.25(with error adjustments) zone is the Fib projection of July 2011 to July 2013. Alternatively, the Fib projection of the move from Jan 22(Low) to Oct 22(High) and Nov 22 low also suggest the projection as 82.92. Hence, the importance. If breached, we may see another spike towards 85.70. This range seem to have been broken and expect the pair to see buying interest on every decline. There is only a marginal hope that still weekly closing is not seen above 83.25.
- Neither the moves in Dollar Index-DXY nor the equity have direct correlation
- A decisive week ahead. Already we are witnessing the levels above the Top of the Triangle/Rectangle and the Oscillators in the weekly charts show indications of higher levels
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