Handful of economic announcements

During the session on Wednesday, there will be a handful of economic announcements coming out of the United Kingdom, the United States, and the crude oil markets. With this being the case, there should be plenty of trading opportunities but we also recognize that the federal interest-rate announcement coming out on Thursday is going to overshadow everything.

DAX looks healthy

The German market initially fell during the day on Tuesday, but found enough buyers to push higher and close towards the top of the range. By forming a hammer like candle, we believe that dips continue to be value that we can buy. On top of that, we can make out an ascending triangle that seems to be forming. We have no interest in buying puts.

Parisian index looks very much the same

The CAC fell as well, but continues to find support below. In this particular market, we can see that the €4500 level is a bit of a “floor” in the market, and therefore time we pullback and stay above that level, we have to buy calls as the market should then head back to the €4700 level.

EUR/USD pulls back, looks to consolidate

The EUR/USD pair has been consolidating between the 1.11 level and the 1.13 level for some time. Because of this, and the fact that the interest-rate announcement comes out tomorrow, we believe this market will continue to drift lower, offering short-term put buying opportunities. However, we would be very quick to take profits.