During the day on Tuesday we only against employment numbers coming out of Switzerland and industrial production numbers coming out of Italy, neither which are exactly market movers. With that being the case, we look to the technical analysis to set up trades for the session.

Gold falls

Gold markets did fall during the session on Monday, but are sitting on top of pre-significant support in the form of $1260 an ounce. While the candle for the session on Monday was fairly bearish, the reality is that there are a lot of call buyers underneath waiting to pick up perceived “value.”

Canadian dollar continues to struggle

The USD/CAD pair rose during the day after gapping at the open on Monday. We tested the 1.30 level which of course has a certain amount of psychological significance. If we can break above there is more than likely going to attract more call buyers. At this point in time, put buyers have to be a bit concerned.

DAX gapped higher

The German markets gapped immediately on Monday, and then went back and forth in a rather violent manner. We ended up solidifying the notion that the €10,000 level is going to be a bit resistive, but if we can break above the top of the range for the day on Monday, it’s very likely going to attract more call buying. Keep in mind that the German market tends to leave the rest the European Union.