USD-INR DEC 2010 FUTURE

Yesterday it made the high of 46.19 & closed at 46.16.This was exactly in line with the our most probable route envisaged. However the momentum indicators are in highly overbought territory & it is prudent to expect the correction only after some sign of weakening of momentum on chart appears. We advise to trade long side till the weakening momentum signs are visible. We are quite hopeful of lower resistance of 46.40 being touched under normal circumstances. However as an alternate probability under abnormal circumstances it may rise to 46.70 levels. By abnormal circumstances we mean like heavy outflow by FII,dollar gaining additional strength against major currencies like EURO,YEN & GBP. As a matter of fact any rise has to correct sooner or later & this rise too will correct to our estimated range of 45.67-45.51. In our view during the initial rise it may not be possible for the swing traders to take any position but intraday trader may trade with positive bias & tighter stops till the targets are achieved & once sign of reversal distinctly visible sell with the strong negative bias for the target of 45.67-45.51. Swing trader may sell short on reversal near the target area with the stop above the high made during the day for the target range of 45.67-45.51.

EURO-USD

Yesterday we had been expecting the wave {C} to unfold from the top of 1.3786 in five waves. The price action now suggests that it is in the terminal stage of it's completion. During this ultimate decline some overshooting of targets are normal phenomenon we see 1.2800-1.2915 as potential range to terminate the wave {C } & hence one more larger degree zigzag completed. Traders are warned not to remain short in this range as these prices will not be tested for long time to come.  Swing trader continue to hold the  short position entered yesterday on bounce near to 1.3340 with the  tighter stop till targets are achieved but reverse the position on the first sign of reversal as expected reversal will be stupendously rising for the immediate target of 1.3400. Scalpers & intraday traders must  trade with the strong negative bias for the range of 1.2915-1.2800.However on any sign of reversal trade long with the strong positive bias.

 EURO-INR DEC 2010 FUTURE

Yesterday  EURO has shown resilience for further down as well as in hurry to terminate it's down move against all the major currencies & it is true with the INR too.Now we are expecting it to terminate the down move in the 59.90-60.10 range reverse swiftly to 61.20. Swing traders may hold their short  sell position with the tighter stop & cover & go long as soon as sign of reversal appers near the target range. Scalpers & intraday traders may trade with the strong negative bias for the day with the target range of 60.10-59.90 after reverse with the strong positive bias for 61.20.