With the European Flash Manufacturing PMI numbers coming out of both Germany and France, as well as the European Union, and of course the New Zealand Trade Balance numbers coming out, we get a wide look at what trade may be doing worldwide. With that being the case, we are looking at the following 3 assets closely:
DAX
The DAX is interesting because it was so volatile during the session on Monday, but it did find support at the €10,400 level. Because of this, it’s possible that we could see call buyers reenter the market somewhere near that area, and then continue to push this market to the upside. After all, this is a market that has recently broken out above that very area.
USD/CHF
The US dollar rallied against the Swiss franc initially during the day on Monday, but we also did up forming a bit of a shooting star, so having said that it’s likely that the market could find quite a bit of momentum to the downside as typical technical analysis tells us that this normally means that the buyers are running out of steam. With this being the case, put buyers could be encouraged.
Silver
Silver markets did break down significantly during the course of the session on Monday, but bounced a bit towards the end of the day. With this being the case, it’s very possible that sooner or later the call buyers will reenter this market and try to push the market back to the upside. The $18 level below was massively resistive, so market memory dictates that it could be supportive. In the meantime, it looks like value hunters are coming back into the market.
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