German Unemployment Numbers October 30, 2014

The session on Thursday will focus on two announcements, with the first one being the German Unemployment Change numbers, which are expected to come out as adding 5000 jobs for the month. That being the case, we feel that it will have an effect on the DAX and the EUR/USD pair. The market should react positively to a better than anticipated number, and of course the opposite would be true.

The US comes out with Q3 GDP numbers as well. It is anticipated to come out at 3%, and that of course could move the stock markets in the Americans, as well as the US dollar in general.

Looking at the EUR/USD pair, we still believe that the 1.28 level above will offer put buying opportunities as the market should find plenty of bearish pressure in the neighborhood. The bearish pressure should extend all the way to the 1.30 level low, so really it really doesn’t matter whether or not we bullish action, we are to simply waiting for a resistant candle in order to start selling.

Looking at the silver market, we have been stuck between the $17 level on the bottom, and the $17.50 level on the top for some time. It appears that the market is going to continue to grind sideways, but quite frankly that’s makes sense because we had such a massive move to the downside recently. Ultimately, we do believe that this market will make a decision, but we do not see that happening today.

The DAX of course tried to break higher during the session on Wednesday, but found enough resistance near the €9100 level to turn things back around and form a shooting star. Because of that, the market looks like it’s ready to pull back, but we think that is simply going to be a nice buying opportunity, and we will be looking to get involved in call options on the first signs of support. We also would buy calls on a break the top of the shooting star.