FOREX The Major Currencies look just a bit stronger against the Dollar today and that implies a longer duration for the corrective phase. The Indian market may see lesser volatility in this shortened week. Euro (1.2804) is rangebound within 1.27-1.29 for the last few sessions but the lack of downward momentum even after the failure to break above 1.29 gives birth to the possibility of extending this corrective bounce to 1.2950-1.30 levels, while the long term trend remains bearish. Dollar-Yen (107.24) bounced just as expected but now may take a pause or correct a bit near the supply zone of 107.50-108.25. The Euro-Yen Cross (136.66) has broken above 136.60 to signal an extension of the bounce to 137.50-138.25 and the weekly Bullish Hammer candle may provide a boost. Pound (1.6165) has made the initial bounce from 1.5900-1.5850 as expected and now may try to extend it to the intermediate resistance of 1.6200-25. The series of lower highs must be broken first before considering any strength. Aussie (0.8802) remains in the sideways corrective mode, looking like Diamond pattern, suggesting a lot of contraction of volatility. A break of the range 0.8650-0.8900 is required to produce a trending move. Dollar-Rupee (61.37) held above 61.15-10 yesterday to recover some of the loss but the near term remains weak as long as the pair remains below the resistance area of 61.55-65 and the possibility of testing the lower end of the broader range of 60.90-61.90 stays alive.
Posted on: Tue, 21 Oct 2014 08:14:44 +0000
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