With a very quiet economic calendar, we believe that the markets will basically pay attention to technical analysis more than anything else during the course of the session on Tuesday. Ultimately, this is a market that will probably just continue what we had seen going on during the Monday session.

DAX looking to pull back

It appears that the German market may pull back slightly, but quite frankly we think that there is enough support near the €9600 level to make this a short-term put buying opportunity at best. Ultimately though, we actually prefer buying supportive candles below via calls for larger moves. If you are nimble enough, you can do both.

Gold markets continue to rally

While they do look a little bit exhausted at the moment, it appears the gold markets will continue to go higher given enough time. With this, we are looking for pullbacks in order to start buying calls on signs of support. On the other hand, if we break above the $1280 level, we would break out and offer new call buying opportunities as we would almost undoubtedly reach towards the $1300 handle.

USD/CHF trying to break out

The USD/CHF pair had a very strong session on Monday, testing the parity handle. If we can break above the shooting star from several sessions ago, which is essentially the 1.1036 level, we believe the call buying opportunities will be strong going forward, and that the market should then reach towards the 1.02 handle given enough time.