Technical Market Commentary
Rupee : Rupee touched the levels of 47 plus and corrected significantly down (unexpectedly) due to fresh bout of dollar selling happening overseas. The trend maintains bullish in rupee but we may look at 47 plus levels again till year end. (USDINR – 46.39) Bullish Euro : EURO is making a rising wedge pattern with clear divergence in the daily and weekly charts. Usually this kind of pattern leads to a strong correction downwards.
Important financial market reversals "triggered" ?
Warned earlier in the week that downside resolutions of multi-month wedges in both the a$ and FXI (China equity etf) were favored, as the nearer term downside patterns were not “complete”. Also said that these markets were potential “trigger” for a potential for a “domino” effect across most financial markets, as these patterns generally resolve sharply (down in this case), and the high correlations/inverse correlations across most financial markets. Both the a$ and the fxi have indeed broken