 Good morning, and welcome to CMC Markets on Tuesday the 1st of May and this quick look at a couple of charts that I think do bear further scrutiny now for the moment. We're looking at the dollar index chart and As we can see from this corridor price action here. We have broken higher We've broken that 91 level that I talked about and I have talked about in great length over the course of the past few months and Measuring the distance between these two levels here gives us a price target around about 93 now this level here around about 91 also corresponds with the 121 and a half level that we talked about in euro dollar and those of you who've been following my periscope and video updates on a fairly regular basis will know That the break below 121 and a half in euro dollar Would appear to suggest that we've got further downside left in this currency pair It also would suggest that the potential for further dollar strength remains quite high So what does that mean in the context of not only future euro dollar weakness? But also further sterling weakness because ultimately I think what we've seen over the course of the past few days is While your dollar has started to track lower the pound has to a certain extent lagged behind it somewhat until The last week or so where we've seen an acceleration in the losses of the pound against the dollar So let's look at the targeting objectives for this particular pair here euro dollar We've already talked about this in previous video and periscope updates You take the distance here between the high and the low and you project it from the breakout point now the easiest way to do that on The CMC markets platform is to go to the draw tools function here And then go to the Fibonacci extension price extension option here Select that and then basically select distance between the high there the low there and project it from the breakout point here So our minimum price objective over the course of the next few weeks and months for Euro dollar on a break below this 200 day moving average here is 117 80 or 118 give or take 20 or 30 points neither either way for the moment There's decent support around about the 200 day moving average at 120 10 That's likely to be a significant support area simply because it is 200 day moving average But also I think because it's a round number and generally round numbers tend to be psychologically important in the context of the groupings of Orders say stop-loss orders or take profit orders so Certainly the direction of travel here would suggest that as long as we remain below 121 80 121 50 Then the direction of travel for Euro dollar would appear to suggest that we're going to see further losses there If we now move on to the pound against the dollar and we have now seen a similar Breakout take place from the previous lows that we talked about and I've talked about In previous updates 137 10 now We haven't conclusively broken below this support level as yet So the big question is will we show any follow through? I think the key question here is if we do show some follow through here Then again the measuring targets or the measuring criteria are fairly similar You basically take the distance from the peaks here. You've got two peaks here around about 143 and a half You've got the law 137 10 you've also got the lows yesterday around about the same sort of area So you basically take the distance between 143 50 137 10 you project it lower on a confirmed Break lower. Well, obviously, you know, my math is fairly basic So that's going to be 600 points give or take which would suggest that if we do sustain a break below 137 then we could well see a Move back to this trend line here, which comes in from those lows all the way back in 2017 Near enough around about 131 132 now That's not going to happen overnight and it may not happen at all because obviously between now and then We've also got good support around about 136 20 as well and this this Grouping of peaks around about here, but certainly a move confirmed move sustained move below 137 is likely to open up the prospect for further sterling losses Towards the 200 day moving average at 135 in the short to medium term. So that's it for today Thank you very much for listening. It's Michael Houston talking to you from CMC markets