While oil is now taking large hits due to the huge oversupply, we must turn our attention to the next two potentials in the market, the first one being the selling in the US stock market as the crash begins to make itself apparent and the other is gold, because as assets become riskier people will turn to the store of value as they always do.
Strong gold means a weaker dollar, what that means for your trading is that the foreign currencies like GBP and EUR will rise significantly against the dollar. Right now the dollar is at a critical level and from here it will either be incredibly strong for the year or it will decline significantly for the remainder of the year and we could see cross currencies rise against it and gold rise significantly towards 2800+
So, let us see what lays ahead of us as the unemployment numbers come in on Thursday but we are expecting the moves to take place today before everyone tries to jump on the obvious trade.
Our next target to the downside is 245.00.
Our next upside target is 1750.00
Our next target is 1.0900
Our next target is 1.2520
Our next downside target is 1.4030