European Union Consumer Price Index

During the session on Monday, we have Consumer Price Index numbers coming out of the European Union, and as a result we believe that the market will be fairly quiet and stable overall, and with that we look to the charts for set ups.

USD/CAD continues to go higher

The USD/CAD pair broke higher during the course of the session on Friday, as we are well above the 1.33 level again. With this, we believe that the market is going to reach towards the highs again at the 1.3450 region. Above there, the market should then head to the 1.35 handle. Above that area, becomes a longer-term “buy-and-hold” type of attitude as far as calls are concerned. We have no interest in buying puts, and believe that pullbacks offer value.

USD/CHF continues momentum to the upside

The US dollar continues to strengthen overall, and this is true against the Swiss franc also. With this, if we can get above the 1.01 level, we feel that it is a call buying opportunity as the market should continue its massive move higher. We have no interest in buying puts, and realize that there is plenty of support just below, so we look at pullbacks as value that we can start taking advantage of using calls.

NASDAQ 100 rolls over

The NASDAQ 100 continues to drop overall, but quite frankly this is simply a pullback that should go looking for support. Ultimately, we believe that a bounce is coming, and as a result we would be buyers of calls. We believe that the 4500 level will be supportive, so somewhere in that general vicinity it should turnaround. Short-term traders could be put buyers, but if you are more apt to look toward longer-term trades, you will have to be patient and wait for call buying opportunities.