USD (US Dollar)
Gold breakout and followed history pattern.As we have talked in past post
#DXY is high and after CPI result it has break up side.
same for #USDINR #US10Y
Till it has chance to more fall and here i have added some supports in this post.
you can find your levels and analysis then take trades.
More to indian market has looks fall to come soon as it making pattern like that but all game of news and data which can changed anytime.
Best of luck. Have a great day.
USDCAD ShortFOREXCOM:USDCAD
Hello traders , here is the full multi time frame analysis for this pair, let me know in the comment section below if you have any questions, the entry will be taken only if all rules of the strategies will be satisfied. wait for more Smart Money to develop before taking any position . I suggest you keep this pair on your watchlist and see if the rules of your strategy are satisfied...
Keep trading
Hustle hard
Markets can be Unpredictable, research before trading.
Disclaimer: This trade idea is based on Smart money concept and is for informational purposes only. Trading involves risks; seek professional advice before making any financial decisions. Informational only!!!!
Understanding Impact of Bond Yield Differential on EquitiesOver the past decade the interest rate differential between US and India has been constantly going down. This has largely been due to stronger fiscal position of India and also gradual weakening of US Public Finances.
This has led to the Rupee becoming more stable against the Greenback, thereby reducing the rate of inflation in India.
Further, this has resulted in rising of equity markets over the last decade, and more importantly, the same setup is likely to stay or become better over the next two decades.
Hence long term retail investors in India can benefit from this by placing algo based orders to buy Index ETFs on dips and reduce their cost of buying and stay invested over the long term thereby getting benefit of power of compounding.
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Trading View Script:
USDINR Weekly Short StrangleStrategy Details:
Short Strangle: Sell an OTM call and an OTM put.
Weekly Duration: Initiating the trade on Monday and closing it by the expiry date, which is typically the end of the week for weekly options.
Potential Advantages:
Profit from Time Decay: Options lose value over time, which benefits the seller.
Range-bound Market: If USD/INR stays within the ±0.25 rupees range, the options may expire worthless, allowing you to keep the premium.
Risks and Considerations:
Unexpected Volatility: Significant news or economic events could lead to unexpected volatility, potentially leading to substantial losses.
Assignment Risk: There's a risk of assignment on the sold options, especially if the USD/INR price moves significantly.
Margin Requirements: This strategy requires a sufficient margin as it involves unlimited risk if the market moves significantly against your position.
Timing: Squaring off positions before expiry can help avoid last-minute volatility, but it also means you may not capture the full premium.
Risk Management:
Stop Loss: Consider setting a stop loss to limit potential losses.
Regular Monitoring: Keep an eye on market news and economic events that might affect USD/INR volatility.
Position Sizing: Ensure the size of the trade is appropriate for your risk tolerance and account size.
Before You Begin:
Backtesting: Test the strategy using historical data to understand potential outcomes.
Understand the Product: Be fully aware of the specifications and risks of trading USD/INR options.
Broker's Rules: Check with your broker regarding the rules and requirements for trading options and the specific margin requirements for a short strangle.
Conclusion:
While a weekly short strangle on USD/INR can be a profitable strategy in a stable, range-bound market, it's crucial to understand the risks and have mechanisms in place to manage those risks. Ensure you're well-prepared and informed before implementing this strategy, and consider consulting with a financial advisor to ensure it aligns with your overall trading goals and risk tolerance.
Rupee best performer 2023. 2024 looks even better.Rupee stayed almost flat against the $ in 2023, depreciating 2% whereas other EM currencies depreciated more than 4%.
Equities soared in 2023 and if things go as they are appearing, then 2024 promises to be even better. There is lot of hop and optimism in the air already about Indian economy and that will most likely translate into higher returns for Indian equity investors.
If you are not in India - You are missing the biggest global party!
Fed stays pat. Equities soar. India's Goldilocks periodIndia has managed to keep its public finance in control and focus on capex led growth. That has ensured that India managed to stay afloat during the storm and now that the storm has subsided, India is on its way to race at higher knots.
This video is an update on the latest global macro developments
If there is a global party on...India's gonna lead!As the US Inflation numbers came soft, all doubts about Fed hiking rates in December were gone. That led to all currencies strengthening against the $. US Yields colled off, Dollar Index came down and US Equities soared.
Indian markets also joined the party. The Rupee made strong gains making new multi week highs. G Sec Yields came off highs and Sensex and Nifty just took off to the skies.
As global uncertainity eases, India stands to benefit the most over the next few decades when we rise up the ranks as a global economic superpower.
USDINR: Symmetric Pattern Formation Could Precede a Breakout
USDINR is currently forming a symmetrical pattern, which is a consolidation pattern that can precede a breakout in either direction. Swing traders should wait for a clear breakout before taking a position.
Trade with Symmetrical Patterns: A Simplified Guide
Symmetrical triangles signal potential trend pauses or consolidations. Breakouts from these patterns often lead to strong directional moves.
Key Steps:
Identify the triangle: Connect lower highs and higher lows with trendlines.
Determine breakout direction: Analyze the preceding trend.
Place entry orders: Buy above upper trendline for uptrend breakouts, sell below lower trendline for downtrend breakouts.
Set stop-loss orders: Protect profits outside the triangle's boundaries.
Establish profit targets: Base targets on the triangle's height.
Remember:
False breakouts can occur.
Use risk management to protect capital.
Combine triangles with other indicators for a comprehensive approach.
USDINR Price Fluctuations: Key News Events to Watch
USDINR, the currency pair representing the Indian rupee against the US dollar, is highly susceptible to various news events and economic indicators. Here are some key news events to watch:
Global Economic Events: US Federal Reserve monetary policy, US economic data, and global economic conditions.
India-Specific News: RBI monetary policy, Indian economic data, and Indian government policies.
Geopolitical Events: Political instability and regional events.
Happy trading!
Disclaimer :
This is merely a trading idea and not a financial recommendation. It is crucial to conduct your own research and consider your investment goals and risk tolerance before making any trading decisions.
Good News Just Doesn't Stop Coming Out of IndiaOver the past few days, there has been a steady fall in Indian yields, largely due to fall in US yields and falling crude oil prices. The rupee has been stable for over a year now; it is this kind of predictability in the economyu that makes India an attractive investment destination vis-a-vis its peers.
As we approach Mahurat Trading, we are crucial resistance levels but the fundamentals and technicals appear to be building up for a rally.
No one can pre empt the markets, hence the indicator script linked below is useful. Whenever the current candle makes a lower low than the previous candle, it gets trigerred and buys. That way we keep buying on lows and pulling the average cost down.
Smiplified Bank Nifty Analysis! - 7th Nov'23Looks Bulls are entering which kept market floating for past 2 days might get good movement by tomorrow or expiry, if open without gaps or open in previous days range.
- As per trend analysis bulls making lower highs as support may hit 43800
- Bullish move above 43800 , Resistance at 43970
- 43600 may act as support & resistance both.
- 43400 support on down side
Note - do your own analysis before making any trade or investment!
Implications of small changes in US Bond Yields and USDINR As US Yields cool off a tad bit, it results into Dollar index cooling and Rupee strengthening. Our Forex Reserves increased, our yields fell and our benchmark equity indices soared. India's maiden 50 year bond issue was oversubscribed and that shows how much interest and confidence there is about India over the coming few decades.
India's largest Festival season - Diwali is on and that is adding to the positive mood and momentum.
Technicals also seem to be changing from sell to buy - but it is early days yet.
So the script works just fine in these conditions as in all other ones. If market makes a new low as compared to previous candle, it buys one unit, thereby effectively pulling the average cost down.
US Fed keeps rates unchanged - Indian markets rejoiceAs the FED did not tinker with rates, Indian equity markets saw a gap up opening. This was probably on the hope tha FII selling will subside and the continuous fall which we were witnessing may pause/ stop.
India's largest festival - Diwali - is on, followed by the Union Budget coming in early 2024 and soon after that the central elections would be announced.
So lot of news flow expected going forward.
Algos help take the subjectivity and emotions out of the decision making, and that is what i have explained in the end of this video idea.
USDINR - all time highs will be taken out in November?USD is making some serious inroads. INR trailing behind unable to maintain the equilibrium.
83.4210 is the current ATH. Today we went up to 83.3010. TVC:DXY at 107.
Continued FII selling will only add fuel to the fire. When the Indian media houses are gung-ho about the decadal that belongs to India & its growth story - the people outside are not that interested.
TVC:US30Y quoting 4.945% looks exciting from a debt perspective !
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A rising USDINR means the INR is getting devalued. Calendar year 2022 saw an erosion of 11.07%, YTD is only 0.61% - will the rising US yield + war in middle east further erode the Indian Rupee??
Tight Liquidity Globally as well as locally pulls Equities downRising US Yields are attracting liquidity from all assets. Also, in the domestic markets the yield curve has become flat.
From being normal sloping during height of Covid to flat today; the shape and level of the yield curve have repercussions on investors.
This video examines the liquidity situation globally as well as locally and tracks leading indicators to get a sense of whether the trend is reversing any time soon.
These fundamental factors lead to technical charts being formed which are now looking more and more bearish.
Finally this video puts it all together to convert all the analysis into action. The script which i have shared is a simple indicator ewhich checks if the low of the current candle is lower than the previous one, and if so, it triggers a buy alert.
Simple as it sounds, is also very effective in pulling the buying average down as we increase the quantity of our holding.
Indian and US G Sec Yields and impact on USDINR and EquitiesBond Yields in India are anchored at 7% whereas in US the curve is inverted and interest rates are going to be 'higher for longer'.
Inspite of this Rupee is not getting hammerred, due to huge forex reserves and even the Indian stock market is fairly resilient, thanks to deluge of local money.
So going forward, a long term investor is likely to benefit if he/ she keeps buying the dip and just stay invested.