[Chart of The Week] The Coming EUR/INR Breakout Retest

JC Parets
August 12, 2020

There has been a lot of action in the Commodity, Currency, and Fixed Income space over the last few months and we've been taking advantage.

Yesterday we spoke about the intermarket signals we're deriving from Interest Rates and last week we spoke about what we were seeing in the Gold/Silver and Natural Gas Markets.

Today, we want to take a look at a key retest that's about to occur in Euro/Rupee and revisit a few setups we've spoken about in the past that are approaching actionable levels.

Here's the Euro/Rupee post that sparked the need for this post. Two weeks ago we wrote about the notable breakout here (and breakdown in Rupees), but the Euro was the only pair to see any follow-through. Now that prices are pulling back, we want to see if this coming breakout retest is successful.

Click on chart to enlarge view. 

Given the long-term trend is higher, we're betting that it will be a successful retest. As a result, we would be buying weakness towards 86.50 with a tactical target near 93 and structural target near 101.50.

Another area we've been taking advantage of is Crude Palm Oil. The thesis has been that if prices are above 620, then the trend is higher and targets 1,050 over the coming months/quarters.

That thesis remains intact, but we want to take a closer look at the daily chart and identify the opportunity to get involved again on the long side.

Here we see prices pulling back towards support as they work off a bearish momentum divergence. From a tactical perspective, if prices are able to stay above 700 then we can be buying this weakness and looking for the acceleration of its long-term uptrend towards our structural target of 1,050.

In terms of Jeera, we've been waiting for this base to explode to the upside, but haven't gotten it yet. With the strength we're seeing in other Commodities, we think it's coming.

If we see a weekly close above 14,200, that would signal a successful breakout and suggest we need to be long with a target near 18,250.

And I know we just spoke about Natural Gas recently, but want to remind you that from a tactical perspective, if prices of Natural Gas pull back towards 145 we'd view that as a buying opportunity.

These are the things in the Commodity and Currency space we're watching this week and next. If you missed any of these initial moves, the market is providing us with another opportunity to get involved in these new trends.

Thanks for reading and please let us know if you have any questions.

Allstarcharts Team

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