EMERGING FOREX – II

The best way to look at the connection between Forex and Equity markets would be to look at them together end of the month or after the end of a quarter. After a damaging bear market quarterly charts are still a bit unclear, but if you look at the end of month charts, you start seeing a glimmer of hope.
Fig. 1 and Fig. 2 are the charts of BETFI and Ron Dollar, the Romanian equity index and the local currency. The former has collapsed while the other has risen (weakened). And now we have a candle reversal formation on both of them. This means that both are looking at a reversal, a strengthening of currency on one side and the rising equity on the other.
Now one might say that emerging market Forex doesn’t move together. Fig. 3 an Fig. 4 are showing the comparison of the Indian equity Index Sensex against the Rupee. A similar relationship exists here. Both Emerging equity and Forex are at inflexion points.
Even if we don’t have a secular reversal immediately, we are nearing it. A few weeks should clear out trends. Till then watch the recent Forex highs and Equity multi month lows carefully.
The latest WAVES.FOREX carries ANTICIPATED and HAPPENED cases on Eurodollar and updates on the other Forex pairs.
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WAVES.FOREX is a perspective product published five days a week. The report highlights the top traded FOREX PAIRS (eg. EURO USD, DOLLAR INDEX, YEN USD, Indian Rupee, Romanian Lei, Swiss Franc, Hungarian Forint, Croatian Kuna, Canadian Dollar). The product highlights Primary (Multi Month) and Intermediate (Multi Week) price trends. The report illustrates key price levels, price targets, price projections and time turn windows. The product uses Elliott waves, traditional technical analysis tools and sentiment indicators.
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