Ok, I've had another brain wave after analysing the EURUSD....

Ok, I've had another brain wave after analysing the EURUSD. Looking at the monthly chart it looks to be undertaking a big bear market rally that will see it rally up to around $1.40 and possibly a touch higher. Possible targets are 74.6% retracement of recent downleg at $1.425 and where the trendlines from recent tops come out at. Looking at the yearly chart the rally high will be next year.

So expect indexes to also make rally highs next year.

However, once the EURUSD reaches its rally high next year, expect to get bearish, very bearish!!!

In the meantime, a pullback is due soon that may be in the order of around 5%. This pullback would fit in nicely with the AUDUSD pulling back to sub $1 before it launches its pop to a new all time top.

El Capo