Market Analysis With Megh Mody

The common currency surged post ECB meet in the early December meet as the ECB president disappointed market by going for only 10 bps cut for deposit rate to -0.30% where market was expecting -0.40%. Now the common currency is waiting for the FED outcome which is set to release on 16th December 2015. Before the ECB meet, the pair already started to form an ending diagonal pattern and post meet it surged from the lows of 1.0506 till 1.0981 levels. Later it moved in a sideways formation which looks like running barrier triangle pattern (a-b-c-d-e). It seems that it has either completed wave e of triangle or one minor leg is pending. The confirmation will only be obtained if prices move above 1.1045 levels, taking out cluster of resistances.  A move above 1.1045 will open positive possibilities and prices can test the level of 1.1070 followed by 1.1240 levels which is 61.8% retracement of wave a. In short, the bias remains positive for EURUSD as it can test the level of 1.12

GBPINR is moving in a extracting triangle pattern which is a part of Neo wave pattern. The pair is moving in a complex correction pattern.  In an extracting triangle pattern, the major trend contracts going ahead. Having said that, in the below chart wave a of the triangle pattern starts on 13th April 2015 with the bottom of 90.85 and completed wave a at 101.03. It then formed wave b in an irregular flat pattern followed by wave c, which was smaller than wave a in length. Wave a surged by 10.18 points (101.03-90.85) whereas wave c took 8.48 points (105.62-97.14). Wave d came down in a three wave structure followed by wave e which is the last leg of the triangle pattern in which wave a was a diametric pattern followed by wave b and now it is moving up in the last leg of wave e i.e. wave c. Wave e must be smaller than wave c in length. Wave e should surge less than 8.48 points, as of now it have soared roughly 3 points. The resistance for wave e should be somewhere near 102.50 leve