EURO, GBP , DOLLAR, INR

Currencies, play an important role while doing InterMarket Analysis.
FTSE, DOW, S&P, NASDAQ all made a new intermediate high. Could India follow suit?Quite possible....We need to wait & watch...

Dollar Index, the much talked about index in the Media these days is getting more than the required attention...Obviously when everybody starts looking at it, the correlation is likely to not work... Markets will change the directions when it has convinced everyone that the opposite it most probable...

Euro (EUR-USD), the currency having the greatest weight in the Dollar index, have a direct correlation with Commodities. Lately Euro has been going sideways, but Gold, Silver & other commodities has shown quite a good strength.Euro was actually in its wave 4 and should soon start its wave 5 depreciating it against dollar.

Pound(GBP-USD), in its wave IV of 3, should soon start it wave V, depreciating against dollar. It could all the way down below 1.35.

Euro against Pound still looks bullish and Euro should appreciate against pound, making new highs.

USD-INR, fell sharply last week, but should hold on here and start its wave 3 upwards, Depreciating against Dollar.

Dollar Index, now finishing its wave 4, should start its upward journey, gaining lot of strength ahead. All in all, Dollar would be the winner appreciating against other curreny which means extreme pressure on Commodities & Equities soon.

Can Employement Ratio Form Patterns?

Below is the chart of S&P(Red) alongwith the US Employement ratio(Blue) since 1962. What we can clearly see is the formation of a Head & Shoulder pattern since 1987. Though the pattern formation has taken many years, its peculiarity is to notice the sharp fall on the break of the neckline. Below 62.5 % you knew where the US Employement Ratio is heading to...