Wednesday, July 18, 2012

USDINR - Elliott Wave Analysis

The hourly chart of USDINR shows, we may have completed the wave (b) of [4] 55.93 levels, and have since came down. This scenario was envisioned in our last post, though we expected the rise to continue in the 56.10-56.60 range, we turned down below that level, this goes to show once again, that, markets will do what they have to, its us who should adjust accordingly. In the process we got resisted at the center line of the corrective channel to complete wave (b) and then have broken down from the corrective channel. I have labeled a tentative {1}-{2}/1-2 labels on the chart, and look forward to a deeper slide continuing till the 54-53 zone in wave [4]. I believe one last dash up is remaining in USDINR, before we see a bigger correction. But for that we have to respect the pink channel, that I have drawn on the daily chart below. This channel is where I expect wave [4] to end, but below this channel, I believe, the correction could get deeper. Fibonacci retracement levels and channels combined together, can give you surprisingly high probability reversal areas, from then onwards though, its just a game of chance.

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