I wrote this post on July 27, 2016, titled:
The MOST Important Chart to watch right now https://t.co/Lnpcg2PBmd
— Deepak Singh (@smarket) July 27, 2017
The Chart I was referring to: Dollar Index. The chart back then:
The whole argument: Dollar Index should find support at 92-93 levels/200 week ma and bounce with intensity. But despite all the optimism - dollar index continued with weakness throughout the week
— Charlie Bilello (@charliebilello) August 2, 2017
But then - it got the support just when it required. On Friday -thanks to strong jobs data - Dollar index made a grand comeback.
— Faraday Research (@FaradayResearch) August 4, 2017
Here's how Dollar index Chart closed for the week: just as I visualized
The Dollar index closed right at the support. And it looks like - Dollar index will see more buying and this can lead to pull back in other Emerging market currency and sell off in precious metals.
The Big thing to watch this week: USDINR breakdown below 200 week ma = False Breakdown? It means breakdown was not for real. Here's USDINR weekly chart
If USDINR climbs this week above 64.17, then yes technically last week breakdown would be declared False Breakdown. But if INR continues to strengthen and not move above 64.17 over next 5-10 days, then it means we are seeing something different. So, time to watch USDINR.
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Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers