- The U.S. dollar fell rather hard during the early part of the Friday session to reach below the 84 rupee level but has seen a massive bounce since then. And it looks like it's going to settle on forming a hammer for the day.
- This of course would be a significant turnaround considering just how ugly things have been over the last couple of sessions. Quite frankly, I think you have a situation here where there is a lot of conjecture out there about potential central bank intervention. And maybe that's true.
- But really, at this point in time with the US dollar strengthening against some other currencies at the moment, it makes a certain amount of sense that we have seen the greenback bounce as high and as hard as we have the 85 rupee level is an area I'll be watching fairly closely as well as the 200 day EMA which sits just below the 85.50 Rupee level keep in mind that there are a lot of concerns about trade negotiations and there's even a rumor out there that perhaps the Indians and the Americans aren't that far from getting some type of deal done.
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If that ends up being the case, it'll be interesting to see how this market plays out. But as things stand right now, I suspect we probably are going to see the market try to grind its way higher because quite frankly, most of the time when you get central bank intervention, it only works for a very short amount of time, and it slows down the damage being done to the currency more than reverse it.
So, I'll be watching this, but if we were to break down below the bottom of the candlestick for the Friday session, that would be a very ominous side for the US dollar indeed.
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