USD INR - Technical Perspective
Source: Bloomberg
USD was in bull market vis-a-vis INR from 1980 to 2002. Then its been a sideways pattern within a range of 40-52.
Only time will prove whether this was a consolidation of the previous 20 year bull market or whether we are going to be in this range for much longer or INR rupee will appreciate thus ending the USD bull market.
As of now I will lean towards it being a consolidation phase.If it breaks above the 50-52 barrier, then we have a renewed bull for USD against the INR.
And if that is the case, as they say in technical analysis, this is unchartered territory and targets are difficult to pin point.
If this analysis is correct, then tighten your belts,we might go into orbit. :)
Source: Bloomberg
USD was in bull market vis-a-vis INR from 1980 to 2002. Then its been a sideways pattern within a range of 40-52.
Only time will prove whether this was a consolidation of the previous 20 year bull market or whether we are going to be in this range for much longer or INR rupee will appreciate thus ending the USD bull market.
As of now I will lean towards it being a consolidation phase.If it breaks above the 50-52 barrier, then we have a renewed bull for USD against the INR.
And if that is the case, as they say in technical analysis, this is unchartered territory and targets are difficult to pin point.
If this analysis is correct, then tighten your belts,we might go into orbit. :)
1 comment:
Even the opening of doors through the liberalisation policy in mid 90's could not help the fall in Rupee. Even the India growth story / emerging markets theme of 2002-2008 ; the subprime in USA did not impact the upward march of $. This time it looks strong to go for higher highs. Intensifying of crises in Europe could be the trigger.
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