Below article highlights on how to trade Forex pairs like USD/INR with application of Elliott wave, Channels and Moving average!
Forex is one of the highest traded asset classes across the world. Big banks, Institutions, Government, investment banks and retailers are involved in trading the currency market and thus the probabilities of manipulation are very less. This is helping us to apply advanced theories of Technical analysis such as Elliott wave, Neo wave to forecast the trend ahead. As per Elliott wave, there are Impulsive and corrective waves. Majority of times, market moves in corrective fashion and there are very less scenario where we get to see impulsive moves.
In an Impulsive moves trading become easier due to the strong momentum and in such trends trend following systems works well. Below we have shown part of research taken from “The Forex Waves Short Term Update” on USDINR which exhibits impulsive trend. This is the mirror image of the trend which is given in Elliott wave text book.
USDINR 60 min chart futures: (Taken from “The Forex Waves Short Term Update”)
(Part of research taken from “The Forex Waves Short Term Update” which is published in today’s morning)
“In the last trading session, USDINR continued to move within a range and closed at a flat note near 64.64(fut) levels.
In the above 60 mins chart, from past few days prices are failing to build the momentum on either side and it is moving within a range. 50 periods EMA has continued to act as resistance which is negative sign. However an important thing to note is that it has reached near the resistance line of the downwards moving blue channel so it will be important to see whether prices will be able to break the resistance line or reverse back from the same. Move below 64.40 (fut) level will resume the trend on downside.
In short, USDINR is in range where 64.80(fut) followed by 65.50 (fut) is an important resistance. Move below 64.40 (fut) will resume the trend on downside and will open up the target for ……”
To know the trading strategies for USDINR, GBPINR, EURINR, JPYINR, subscribe to “The Forex Waves Short Term Update”