Looking at the upcoming session on Monday, there is almost nothing as far as announcements are concerned. In fact, the Americans are celebrating Presidents’ Day, which of course is going to keep the stock markets closed. With that, we feel that the market will focus on Europe, meaning that it will be a relatively short day as far as action is concerned.
We believe that the EUR/USD pair will find sellers eventually, as the market formed a shooting star for the day on Friday. That being the case, the market is one that we will want to buy puts and on signs of resistance. That being the case, the market is one that we cannot be bullish of and believe that the market will eventually fall to the 1.11 handle. The 1.15 handle above should be massively resistive, and as a result we don’t see any opportunity for the pair to rise with any significance.
That the gold market, we rose during the course of the session on Friday, as we tested the $1230 level. With that, the market should continue to go higher and we believe that buying pullbacks on short-term charts will be the way to go going forward. Ultimately, we believe that the gold market will break out to the $1240 level, and that the” floor” in this market is the $1180 level below.
