Past week saw a heavy buying interest as the support at 81.70 was holding for the second week. The Monthly candle still shows a bearish candle. We need to see a daily close below 81.70 for further lower levels. This month being the year end it appears less likely that we may see lower levels. Most likely scenario would be a consolidation between 81.70 and 83.10. There could be choppy moves within this range. A close outside this range requires re-assessment of risk/direction and target.
A few more observations:
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.
Will this range be protected for one more time? We may get further clues by the end of this week
The increased volatility and wild swings likely to continue