During the session on Tuesday, we get a massive amount of announcements to move the markets in general. For example, we get the Canadian Ivey numbers, the GDP numbers coming out of the European Union, and Factory Orders coming out of both the United States and Canada. We also have an interest rate announcement coming out of Australia, as well as many other mid-level announcements.
The German index rallied after initially falling on Monday, as we continue to test the €10,808 level for resistance. If we can break above there, the market should continue to go much higher, and at this point in time it looks as if pullbacks will be thought of as value to attract call buyers.
USD/CHF
The US dollar initially tried to rally against the Swiss franc but turned around to form a very negative looking candle. If the market breaks down below the 1.0075 level, it’s likely that the put buyers will continue to push until we reach down to the parity handle again. Put buyers seem to be emboldened today.
Gold
The gold markets initially rallied on Monday, but found the $1190 level to be a bit too strong. It now looks as if we are continuing to grind lower, and that should continue to bring out put buyers every time we rally. Currently, the most obvious support on longer-term charts is the $1100 level below.
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