We believe that silver traders will continue to have to be very nimble, but the market does seem to be attracted to the $16 handle. With this, we continue to buy calls once we get down to the $15.85 level, and puts as soon as we get towards the $16.15 level. Ultimately, we will break out of this range and follow the market in whichever direction it decides to go.
The EUR/USD pair continues to be very range bound, being trapped between the 1.14 level on the top, and the 1.11 level on the bottom. With this, we continue to trade back and forth, buying calls closer to the 1.11 handle, and buying puts closer to the 1.14 level. We believe that might be the case for a while, and even with the FOMC statement today, we think that we will stay within the range.
The DAX (DAX) fell initially during the session on Wednesday, but found enough support at the 10,800 level to turn things back around and head towards the vital €11,000 handle. With this, we believe that the market will probably go higher from here, and therefore we are call buyers and anticipating the market to move back towards the €11,200 level. We have no interest in buying puts at the moment, although we recognize that a break down could come if we go below the €10,600 level.
S&P500 (SPY) moved higher. From here, we are favour of call options, and a push above 2101.70 the 50% Fib exposes the resistance level at 2113.60. In case of a move below the 2077.20-82.00 area targets the support level at 2069.10 and we could be buyers of put options.
EUR/GBP The pair is trading lower during the previous sessions. We would be buyers of puts for the EUR/GBP as it closed below the 50% Fib at 0.7216. Near-term support is at 0.7050 with a break above that on a daily closing basis exposing the next level at 0.6844 the 161.8% Fib. In case of a move above the 0.7216, we could be buyers of calls.
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