US Dollar/Indian Rupee Sets New Records: This is What Happens AFTER the Paint Dries
by Nico Isaac
Updated: May 05, 2020
I'm Nico Isaac and THIS is Chart of the Day
This chart of the US Dollar/Indian Rupee rate looks much like the dollar/ruble chart we recently showed. Thus far in 2020, the B.R.I.C. nation currencies have stolen the forex show headlines.
Here, we see that between early February and late April, THIS currency pair embarked on a powerful rally, which saw the rupee fall 7% to its lowest level ever against the greenback.
Whereas sentiment for the ruble was electrified with bullish calls before its 2020 downturn...
...Sentiment for the rupee before ITS turn was about as "electric" as a
In early February, the USD/INR had barely budged from a seven-month long sideways trend. One day, the rupee would pare its gains against the dollar; the next day it would eke out a mild rise. As for the rest of the days, the pair seemed to lacked direction entirely
As one February 10 CNBC described it:
"Domestically, trading in rupee is like watching paint dry.
Going further, it is most likely that pair shall not depreciate heavily on the back of strong inflows in the bond market and also would not be appreciated sharply as the RBI is constantly building reserves which are now at $471.30 billion.
Hence, it will remain in the range of 70.70-72.20 levels till the current financial year-end."
But even as these sources were telling investors to give up on the dollar/rupee pair -- our February 6 Currency Pro Service was telling subscribers to sit up and get ready.
There, our special opportunity section featured the US Dollar/Indian Rupee pair, focusing on these two lines here [between A and B] on its price chart.
This signaled a very specific pattern was unfolding, namely a triangle:
In Elliott wave analysis, a triangle is a sideways trending move that
can feel like -- well --
"watching paint dry." A triangle appears only as wave 4 of a 5-wave impulse, or, a wave B of an A-B-C correction -- as was the case here.
Again, triangles demand patience. But the wait is worth it. Because when the triangle is complete, then comes the drama of a "thrust" -- a sharp, swift, move in the opposite direction.
In turn, our February 6 Currency Pro Service analysis told subscribers that the USD/INR stage was set for quote:
An "opportunity to have an advance in wave C towards the high of wave (3)."
From there, the pair broke from the completed triangle pattern and thrust higher to a new record.
In the world's leading forex markets, opportunity happens on a dime, euro, franc, loonie, ruble, rupee and more. Be there before the tide turns with our premier, Currency Pro Service. See below for more.
A Clear Elliott Wave Pattern Told the Dollar/Rupee Story Before It Happened
It's true: our Currency Pro Service forecast alerted subscribers before the big move unfolded. The charts and analysis in our Currency Pro Service put subscribers on the right side of the approaching change in trend. See for yourself what your missing, before it happens. Follow the fast steps below.
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