After topping out at the beginning of the year at $118.27 the slide down has been impressive. We bottomed out a few days ago at 96.74.
Short term the trend is pointing up. A sustained hold above the $100 level will be a psychological blow to hopes for a sustained drop lower. A big level to watch is the 38.2 fib level from the Feb/Apr hi/lo at 104.96. Closer to home the 100 H4ma and upper trend line at 102.75/80 may stem further advances for now. Below the 55 H4ma and lower channel line both come in at the $100 level adding good support to the move up.
The fall in oil prices would have been welcomed with open arms by the UK. A very big cause of our high inflation is imported and one of the main cuplrits is fuel.
It puts the UK government and the BOE in a very difficult position as profit margins are strangled (hitting growth), and high prices push up inflation, that can’t readily be kept in check by monetary policy.
