- The US dollar has bounced a bit during the trading session on Wednesday as we continue to see a lot of noisy behavior in the US dollar versus Indian rupee pair.
- This is a market that continues to see a lot of noisy behavior, but I think in general, traders are going to continue to favor the US dollar as it is more of a safety currency, and of course there are a lot of questions asked about Asia.
During the day today, I have done analysis on the Thai Baht, Singapore Dollar, and Japanese Yen. They are all showing me the same thing, which is essentially that the Asian currencies are seeing outflows. I think at this point in time it’s likely that we will continue to see most Asian currencies struggle. The Indian rupee will fall under that purview, and I think we are in a situation where the United States dollar will be preferred against most Asian currencies. Ultimately, this is a situation where the market will continue to see a lot of upward momentum.
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Technical Analysis
The technical analysis of course is very bullish, as we have bounced from the 50-Day EMA. The 50-Day EMA of course is an indicator that for the most part has held up quite nicely. I think at this point in time we continue to see a lot of value hunters coming into this market and try to take advantage of “cheap greenbacks”, and I do think that eventually we will probably go looking to try to take out the recent highs near the ₹83.75 level. If we can break above there, then the market can truly start to see a lot of momentum chasing, and perhaps a bit of “FOMO.”
Ultimately, this is a market that I think continues to see a lot of noisy behavior, but I do think that it is probably only a matter of time before we break out in continue to go much higher. I have no interest in shorting this market, and I believe that buyers will continue to see value on each and every dip.
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