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Looking at the Friday session, there’s almost nothing on the economic calendar to move the markets, so quite frankly we are going to have to look at the charts themselves for trading opportunities. Because of this, we believe it technical analysis will lead the way, and that’s exactly what we’re going to focus on.
1 – Looking at the EUR/USD pair, you can see that we continue to chop around the 1.12 level, and anticipate quite a bit of sideways action until we get some type of resolution to the Greek debt talks. However though, we believe that buying calls will be the only thing you truly can do, so if we can break above the top of the range for Thursday we would be call buyers as the market should then head to the 1.14 level. We have no interest in buying puts.
2 – The NASDAQ did rise a bit during the session on Thursday, but struggled near the 4560 level again in order to form a fairly unimpressive candle. It looks like we need to continue pulling back in order to build up enough momentum to break out above. We are call buyers below, but we really need to wait until we get a supportive candle on the shorter-term chart.
3 – Looking at the DAX, it’s a very similar situation to the NASDAQ, as we tried to rally during the course of the day on Thursday, but gave back the gains once we hit the €11,600 handle. We did up forming a shooting star, so if we do break the bottom of the candle that could be a short-term put buying opportunity. On the other hand, we break above the top of the shooting star which is essentially the €11,600 level, we could be buyers of calls as we should continue to go much higher.
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