Market Analysis & Trading Opportunities - August 14, 2015

Video Length: 00:02:23

Looking at the session on Friday, we have a handful of economic announcements that could move the marketplace. For example, we have the/GDP numbers coming out of the European Union, as well as the PPI numbers coming out of America. Beyond that, we have Industrial Production numbers and Preliminary University of Michigan Consumer Sentiment numbers as well. With this, we take a look at the charts.

1 – The EUR/USD pair went back and forth during the course of the day on Thursday, showing quite a bit of resistance of the 1.12 level. This is at the top of the recent consolidation area, so having said that we feel that it’s only a matter of time before the market drops. However, we don’t have any illusions of it being an easy market deal with, but we have to say that a break down below the bottom of the range for Thursday is a put buying opportunity.

2 – The Dow Jones 30 went back and forth during the course of the day on Thursday as well, showing support based upon the hammer that had formed on Wednesday. With this, if we can break above the top of the Thursday range, we are call buyers as the market should then head to the 17,800 level given enough time.

3 – Gold markets fell a bit during the session as well, but quite frankly we think that there is more than enough support below to keep us from buying puts quite yet. We would buy a put on a rally that shows signs of exhaustion above, as we believe the 1140 level is resistance. However, if we get down below the 1100 level, we be buyers of puts there as well.