The session on Tuesday features of the ISM Non-manufacturing PMI numbers coming out of America, and the Australian central bank releasing its monetary policy statement an interest-rate decision. With this being said, it is not likely to be a major shift in momentum as far as the markets are concerned during the day, but those 2 announcements are going to be what most people are paying attention to.
USD/JPY
The USD/JPY pair gapped lower at the open on Monday, as we sit just above the 111 handle. This is an area that’s been very supportive previously though, so having said that it would not be surprising at all to see call buyers enter the market in this general vicinity. With that being the case, it would be a simple continuation of the overall consolidation between 111 and 114 that we’ve seen recently.
CAC finding support
During the session on Monday, the CAC initially fell but found enough support at the €4300 level to turn around. The fact that we formed a hammer that was preceded by a hammer on Friday suggests that perhaps call buyers are entering the market in this general vicinity, and that they are going to try to keep the market within the previous consolidation area which has a ceiling at the €4500 level. Because of this, the market looks as if he continues the same attitude.
WTI finds support
The WTI Crude Oil markets found a bit of support at the $36 handle, an area that has offered quite a bit of support in the past. With this being the case, call buyers are more than likely going to be interested in this market for the short-term. However, there has been quite a bit of concern from a fundamental standpoint as supply still far outweighs demand. In the short-term though, it looks as if the call buyers are trying to make a bit of a stand.
