During the day on Wednesday, we get a handful of mid-level announcements on the United Kingdom, European Union, and the Federal Reserve Chairwoman is speaking before Congress. Because of this there could be some volatility, but at the end of the day we do not expect any major changes.

AUD/USD finds support

The AUD/USD finds support at the 0.70 level as we ended up forming a massive hammer. However, there is a shooting star at the day before, and of course the shooting star a couple of days before that as well. In other words, rallies will be short-lived and we think we will more than likely see enough exhaustion above in order to serve buying puts again.

WTI Crude Oil

The WTI grade of oil broke below the $30 level again, and looks likely to go even lower. We believe that buying puts on a break below the range for the session on Tuesday is the way to go, or buying puts on short-term bounces will be. We have no interest whatsoever in buying calls, as the market is most certainly in a downtrend.

Gold continues to rally

Although the gold market continued to rally during the session on Tuesday, the reality is that we are way overbought at this point. Pullbacks should be looked at as potential call buying opportunities at lower levels, not an opportunity to start buying puts. Quite frankly, this move has been so strong it should continue, it’s just that it’s running out of momentum at the moment.