The market took a very strong setback yesterday which has continued the momentum through today. This is good position for the markets as it strengthens the bulls argument going forward. The spike high made last week confirms the bull. The market is now setting back and we would expect that the market could see a dip to the 1.5669 level which is constructive to the overall bull picture. The current US Dollar weakness is driven off the weakening oil price which is based on the concept that oil is finished to the topside. This is not our house view. Although we called the oil high to be $147 on 28th December last year, the current setback is correctional to this target. We still see that by October we will be back on the bull tack. Our downside target for oil is $121with potential to achieve $111.79 before the market can reattempt the topside for oil. These are corrections that are a necessary part of the bull market structure. The spike highs in Oil are a good continuation signal for the market in the longer term. This is the largest influence in the markets at the moment. Unfortunately, we believe that the central banks in the US and the UK may well take this as a good chance to cut rates again to stimulate their economies. This would be a major error of judgment.
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Don't chase the market, Let the market come to you
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