Past week saw a consolidation after a sharp fall in the previous week. The support at 81.70 is seen as crucial and a daily close below would trigger next round of selling and could drift towards the next support at 81.20. Most likely scenario would be a consolidation between 81.20 and 82.74. There could be choppy moves within this range. A close outside this range requires re-assessment of risk/direction and target. If the momentum continues we may see the pair drifting towards 79.90.
A few more observations:
Disclaimer: The views expressed here are personal and not connected to SYFX Treasury Foundation. The views are for learning and reference purpose only.
A few more observations:
- The currency corrected after making multiple attempts to break 83
Dollar Index-DXY is likely to continue the familiar range of 101-105.
The raising upward channel indicate the broader range of 77.10-83.30
As noted in the previous blog, continue to keep the following input for quick reference.
The 82.75-83.25(with error adjustments) zone is the Fib projection of July 2011 to July 2013. Hence, the importance. If breached, we may see another spike towards 85.70.
At least for now the zone is protected
The increased volatility and wild swings likely to continue
Disclaimer: The views expressed here are personal and not connected to SYFX Treasury Foundation. The views are for learning and reference purpose only.