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The session on Tuesday doesn’t feature much in the way of market moving events, so we believe that most of the set up will be technical. One particular market that does catch our attention is the USD/CAD pair, as we are approaching a significant support level in the form of 1.30 as it has been so reliable in the past. Because of this, and the fact that the Ivey numbers come out during the day, we believe that this could be an opportunity to serve buying calls in an oversold market.

1 – Commodities could get a little bit of a boost during the day though, especially if the US dollar loses strength against most currencies. Keep an eye on the general attitude of the US dollar, if it looks a bit soft, you could get some follow-through in the gold and silver markets. Oil looks a bit healthy, but really at this point in time you have to pay attention to the $48 level in the Light Sweet Crude market, as it seems to be us pretty significant barrier. Think it’s broken to the upside, oil in general should go higher.

2 – The Bank of Japan has an announcement late in the session as far as its monetary policy. It should not change much, with maybe the exception of adding qualitative easing. That might make the Japanese yen a bit susceptible to selling pressure overall. If that is the case, the USD/JPY, AUD/JPY, and the GBP/JPY pairs will all be very interesting for call buying opportunities.