Multitude of announcements will move the markets

With unemployment numbers coming out of Germany, GDP numbers coming out of the United Kingdom, and inventory numbers coming out of the United States for crude oil, it’s very likely that we will have quite a bit of volatility during the session. However, this sets up a nice opportunity to place trades during the session on Wednesday.

CAC ready to bounce?

The Parisian index fell below the €4300 level during the session on Tuesday, but turned back around as €4300 offered enough support. By doing so, we ended up forming a hammer which of course is very bullish sign. If we break above the top of the range for the session, we think a short-term call buying opportunity that could extend all the way to the €4500 level will present itself. A break down below the bottom of the range would be bearish, and more than likely send this market heading towards the €4200 level.

Gold showing signs of strength

Gold markets fell initially during the day on Tuesday, but bounced enough to form a massive hammer. The hammer of course is a very bullish sign, and on a break above the top of the candle for the session on Tuesday, we are willing to buy calls in the gold markets as we should then reach towards the $1150 level. It is not until we break below the $1120 level that we would consider buying puts.

EUR/USD continues to struggle in general

The EUR/USD pair went back and forth during the day on Tuesday, essentially doing nothing by the time it was all said and done. With that being the case, the market looks difficult to trade, but the 1.11 level of course offer support that we can serve buying calls off of, and then of course the 1.13 level should be resistive, possibly offering put buying opportunities. Focus on short-term charts.