With the Federal Reserve releasing its minutes from the last meeting during the session today, as well as the Bank of England, it’s likely that we will see a lot of volatility based upon perception. However, it’s very difficult to quantify how the market might react. Because of this, we will have to play technical trades more than anything else.
DAX Looks Strong
Looking at the DAX, you can see we broke above the €11,800 level, and continue to go a little bit higher during the session on Tuesday. We believe that as long as we can stay above the €11,600 level, that the market should continue to go higher and of course we would be call buyers in that general vicinity, and have no interest in buying puts until we break well below it.
EUR/USD approaching support zone
Looking at the EUR/USD pair, we have fallen rather significantly over the last couple of sessions, testing the 1.1150 level during the day on Tuesday. However, we think there is a significant amount of support somewhere near the 1.10 level, and of course current levels. Because of this, we are looking for signs of buying by the market, and will serve buying calls. Puts are not even a possibility until we get well below the 1.10 level.
Gold Falls Hard During the Session
Gold markets fell rather hard during the day on Tuesday, slicing down to the $1210 level and below. Because of this, it appears that there could be a call buying opportunity soon, as we have pullback from the significant move higher. We believe that waiting for signs of buying pressure just above the $1200 level will be the way to go going forward as we buy calls and aim for much higher levels. We have no interest in buying puts even though the sellers asserted themselves during the Tuesday session.
