Rising USD Ahead

The USD INR has broken out of a falling trendline. See the chart below.

We have discussed this before. Money rotates between various asset classes. If equities have to fall, money has to flow into other assets like Bonds, Currencies etc.

See the breakout in USD INR in Feb. It broke the Resistance (shown by the flat blue line) and after that was a very bad period for Equites in March. After topping out it has been steadily falling, and Equities have rallied nicely off the March lows. Now USD has again broken out. If this breakout holds and it continues to trend higher, it will be a bad phase for Equities.

So track the USD INR closely.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: