Market Outlook Ahead

Ironically, the market would have reacted more with the current market conditions with oil moving lower at USD 85.00/bl. levels, Gold just about making an attempt to move higher together with the positive tone for the USD. Where we could find the USDX at the 78.75 basis point attempting to stay positive with78.05-80.25 trading range as the first initial target.

On the fundamental stand point, the Obama speech on cutting the deficit back down over a period of 10 years has been the back-drop together with a better outlook for US interest in Egypt in the near-term has helped propelled a slow recovery for the US dollar. It would stay within a certain trading range as it tries to slowly build momentum towards the end of the first quarter and middle of year particularly for the first week of April. this is where most of the position adjustments takes a heavier toll as the 1st quarter market sentiments would spillover the first two months of the 2nd quarter. A better valuation where the stock market would be priced in fair value compared to the first opening month of the year.

With that said, the rest of the majors would be making its corrective movement lower . To start with would be the Euro and the British Pound. More influential would be the cross rate of the EURGBP where it is currently showing its weakness more and building down to it previous lower levels. The 0.8330 would be the first target objective to be attempted sooner than later. On the technical front would be described on our complete report on our website at: http://www.megatrade101.com/