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.