when combined with Elliot wave counts it can be lethal. In the below chart we can see that channel played its role and price have respected the same on both ends.

This was the year of political surprises first Brexit and now the victory of the republicans. Both the events exhibited a lot of volatility within the currency markets. During the key reversal point the Elliot wave study jumps up and warns about the event because the market has peculiar behavior of surprising and it turns when none expects.

USDINR Daily chart spot:

USDINR,Elliott wave

Wave Analysis:

USDINR has showed high volatility in last few months. In the month of November 2016 sharp up move from 66.26 to 69.04 level was witnessed. Post that INR has appreciated against USD in last 2 weeks and has moved lower from 69.04 to 67.30 level till now. During such sharp up move and down move one should trade with strict stop loss to minimize the risk and capitalizing on profits.

The daily chart shows that prices are trading in minor wave v of intermediate wave v (blue color) from the start of November 2016 which is subdividing further. After consecutive 10 trading sessions, in last session positive attempt was seen which has tested the high of prior bar. However by end of day prices failed to hold at higher levels and reversed on downside which has doji candlestick pattern. This suggest indecisive over short term.

In short, USDINR is in range post the sharp fall and arrived near --- of prior up move. Move below ----- will resume down move towards ----. 68 is the resistance on upside.

The above mentioned research clearly highlights that we were expecting USDINR to depreciate and prices have behaved in same manner. To trade such moves, subscribe to “The Forex Waves Short Term Update” and for more information visit Pricing Page