06 November 2011

Dollar Bull Run?

The USD-INR chart shown below looks very bullish. After doing a perfect 62% retracement and finding support at the 44 mark dollar is strengthening. I would expect some correction or consolidation and then another rally till 52.

The rally from 39 to 52 looks very impulsive to me, and I would expect the next rally to be the same with base target of 57 and then to 65 in long term. Which actually paints a very bearish picture for equities and commodities.


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