European Central Bank interest-rate decision
The largest announcement during the day won’t necessarily be the interest-rate decision coming out of the ECB, but probably the statement accompanying it will be one of the biggest market movers. Because of this, expect a lot of volatility in the EUR/USD pair, as well all other things related to the Euro.
EUR/USD tests serious support
The EUR/USD pair tested pretty serious support during the session on Wednesday, as we believe the 1.09 level is essentially the bottom of a support zone. With that, we are buyers of calls as long as we can stay above 1.09, which would have us switching to puts.
CAC continues to impress
The Parisian index continue to go higher during the session on Wednesday, as we have cleared the €5000 level. At this point in time, as long as we can stay above €4800, we feel that there will be buyers. With that, we are bullish and will only buy calls. With the price action that we’ve seen lately, we have to assume that any pullback will only offer value.
British pound sits still
The GBP/USD pair basically sat still during the session on Wednesday, but we believe that’s a fairly healthy sign. It shows that the market is comfortable up at this level, and therefore we think pullbacks all the way down to the 1.55 level offer call buying opportunities. We are also call buyers on a move above the top of the daily range.
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