Markets will have very little to look at with perhaps the exception of Australian employment, British manufacturing, and the RBNZ’s take on the global economic environment. With that being said, we look at the charts for a more technical type of situation today.
1 – Gold markets initially rallied during the day but could not hang onto gains above the $1180 level. This shows a market that is simply exhausting, so at this point in time we will more than likely step to the side but we do recognize that a move above the top of the shooting star for the session on Tuesday is an extraordinarily bullish sign.
2 – The EUR/USD pair went back and forth during the day on Tuesday, essentially settling nothing. However, the one thing that we did show was that we seem to have some support at the 1.12 level. Because of this, we are buyers of calls on short-term pullbacks within expectation of challenging the 1.14 handle given enough time.
3 – The FTSE initially tried to rally during the session on Tuesday, but continued to fall. We believe now that the FTSE is heading to the 6700 level where will find support. Break down below there is a very bearish, and would have us buying puts hand over fist as the market should break down significantly. We have no interest in buying calls until we get back above the 6800 level.
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