The Euro completed wave 3 up from the Jan 2017 bottom. Draw a trendline of the highs and project a reverse channel down for wave 4 potential. Wave 4 goes either to the wave 4 of lower degree near 1.166 or the lower end of the channel at 1.147 and rising. It can take up to a month to develop. Wave 4 can also be a time consuming triangle that does not go down as much but in a range till it touches the lower channel line that is rising.
EURINR – Against my earlier count that wave 5 was complete it probably is doing that now. Prices have moved up in a channel and we maybe due for the first serious set back for the EURINR since it started the move up. This 5 wave rise should be wave 1 of a long term bull market and the coming correction wave 2 down. 23.6% retracement at 75 and 38.2% at 73.7 are the first two support levels to watch.
USDINR retraced 61.8% in minor wave ii down at 63.85 and is finding support there. Holding this wave iii=i points to 64.60 next on the way up in what should develop as an impulse.
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