The EURINR completes a 5 wave rise from April and should now be in wave 2 down, that can retrace 23.6% to 75 at least or 73.75 near 38.2% retracement
US 10 YEAR T NOTES
After a long wait the US 10 year and 30 year momentum indicators rolled over yesterday and tonight they broke the rising channel from the July low so the move up should be complete. The bond market started its next wave down. Unless it is part of a more complex rise, we should anticipate that wave 3/C down long term has finally started. Prices sold off from the 20 month averages. Next will be the broader rising channel from the March low.
USDINR has spent a lot of time trying to move higher so it is possible that wave C down is developing into an ending pattern. The 20 week average at 64.24 is acting as a still resistance that can push prices down in wave e to 63.32. Unless we get above 64.24 this maybe the case. Once wave C is complete prices should start a prolonged advance.
Adam Smith Associates offers trade & commodity finance related services & solutions to its domestic and international clients. Views expressed in this article are purely of the author – Mr Rohit Srivastava – a leading technical analyst. Visit www.adamsmith.tv for services offered by Adam Smith Associates Pvt Ltd