Given the nature of the Rupee market I felt obliged to take a step back somewhat as the action looks very aggressive & volatile if you just concentrate on the last few months but if you take a longer view then you can perhaps see the wood for the trees!
Looking above you can see we have been in a continuous bullish action for most of 2014! Only have we in this past Jan seen a decline but that perhaps can be partially attributed to the overextension outside the Upper Tine of the recent Schiff Pitchfork following which prices came back down to the key 50% Fib at 61.22. Since then prices have recovered and we have the awkward situation of a Key Reversal Up on the Weekly Chart and a Bearish Engulfing Pattern on the Monthly Chart!
At the moment would suggest the former trumps the latter not only because of its greater immediacy but also because the support underneath the market (more than one 50% Fib plus Medium & Long MAs) have greater credit than the resistance!
Hence for the moment it will be bullish with a question mark! For the record Support is currently at 61.90, 61.73, 61.22, 61.07 & 60.97. Resistance is at 62.15, 62.28, 62.60, 63.01, 63.14 & a combination based upon 63.53!
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