The EUR/USD pair continues to bounce around between the 1.11 level on the bottom, and the 1.14 level on the top. Wednesday proved it to be more of the same, so we are going to assume that this market will stay within the consolidation area. However, what we want to see our buying opportunities as far as calls are concerned, and we will avoid puts because we believe that the momentum is changing. As long as we remain above 1.11, we are buying bounces on short-term pullbacks in the EUR/USD pair.
The WTI Crude Oil markets continue to consolidate as well, with the top of the market been somewhere near the $62.50 level. During the session on Wednesday, we attempted to break out again, but failed as we have several times before. With this, we feel that the market probably drops a bit lower, offering a put buying opportunity. However, we would not press the issue far below the $59 level area.
The DAX had a strong showing on Wednesday, but is running into a bit of resistance at the €11,200 level. Is because of this that we are a bit hesitant to start buying calls, but we do recognize that if we can get well above there for a couple of hours, we would consider buying calls at that point and aiming for the 11,600 region. With this, we believe that it is difficult to buy puts, but we need to be convinced of upward momentum in order to buy calls.
Comments
Log in or sign up to join the conversation.