During the session on Tuesday, we have a couple of housing related announcements coming out of the United States, but quite frankly that should not be enough to move the markets. After all, we know that housing and construction is not the driver that it once was of the US economy. With that being the case, we think it will be a “steady as she goes” type of day.

France struggling to break out

The CAC tried to rally during the course of the session on Monday, but pulled back to form a shooting star. With that being the case, the market looks like it isn’t quite ready to go higher, but we do have a clear call buying opportunity on a move above that shooting star. Pullbacks could offer value as well, but would have to also feature a supportive candle.

USD/CAD finding support

Although it has not been very pretty, it appears that the USD/CAD pair is starting to find support. The 1.28 level below is essentially the “floor” in this market, and with that being the case as long as we can stay above there we are not interested in buying puts. In fact, if we can break out above the 1.31 level, we would be buyers of calls as it would show resiliency.

British pound continues to fight

The GBP/USD pair rose during the session on Monday, testing the 1.55 level. This is an area that has offered quite a bit of resistance, but in the end we believe that we are going to go above there. On a break above the 1.55 handle, we are buyers of calls as it should lead to a move towards the 1.56 level, and perhaps even higher than that. Pullbacks should offer buying opportunities as far as calls are concerned also.