During the day, we don’t get much in the way of economic announcements so we believe that this will be a technically driven trading session. With that in mind, we look at the following 3 scenarios.
Volatility in the DAX
The DAX initially shot higher, touching the €10,000 level, but turned back around during the session on Thursday due to moves in the Euro. Nonetheless, there is a con of support just below, so we are waiting to see whether or not we pullback and bounce in order to start buying calls. We are not interested in buying puts, we think there’s far too much to deal with below.
USD/JPY rallies then falls
The USD/JPY pair broke higher during the course of the day on Thursday, testing the 114.50 level. However, we found enough resistance there to turn the market back around and form a massive shooting star. With this, it looks like we are simply going to continue to consolidate, and a move below the bottom of the range for the day on Thursday should send this market looking for something closer to the 112 level.
$1240 holds
The gold markets initially fell during the course of the day on Thursday, but found the $1240 level to be supportive enough to turn the market completely around and form a massive hammer. Because of this, we believe the gold markets will continue to rally given enough time, and we will eventually break above the $1280 level.
