Look at the economic calendar, there is pretty much nothing out there that’s going to move the markets today. However, we do have some technical setups worth paying attention to. With that being the case, we look at the flat session on Tuesday in the EUR/USD pair as a harbinger of potential bullishness. The 1.05 level below has been supportive in the past, and for it to be supportive again would not be a real stretch. However, we believe that any rally at this point in time should continue to offer put buying opportunities and we will use them as such. Resistive candles on short-term charts will be used for our entries.
Gold markets fell rather significantly during the session on Tuesday, as they head towards the $1180 level. This is the bottom of the overall consolidation, and as a result if we can break down below there we would be put buyers hand over fist. On the other hand, if we get some type of supportive candle in that region, we recognize it as a potential short-term call buying opportunity. Either way, we will be watching $1180 with great interest.
gold
The FTSE went higher during the session on Tuesday, as we continue to consolidate between 7050 and 7100. We recognize a move above 7100 as being extraordinarily bullish, and should be the next leg higher. We would be buyers of calls above that level, but would also be interested in buying calls below on supportive candles as we see so much support all the way to at least 6500. We have no interest in buying puts at all.
The DAX had a relatively flat day during the session, but ultimately looks like it’s trying to find some support. If we can break above the range for the day on Tuesday, we would be call buyers at this point in time as the DAX should continue to benefit from European Central Bank liquidity.