Handful of announcements
There are a handful of announcements coming out during the session including the ADP Nonfarm number, the Nonmanufacturing ISM number, and of course the Crude Oil Inventory numbers. With this, there should be quite a bit of movement around the market, but we believe that it will be somewhat subdued due to the fact that we have the all-important jobs number coming out on Friday.
Gold continues to melt down
Gold markets are really falling apart during the session on Tuesday, as we are starting to plunge towards the $1100 level. Any type of rally at this point in time should continue to offer short-term put buying opportunities, and that’s exactly how we would treat this market going forward.
USD/CAD looks ready to go higher
Even though the WTI Crude Oil market rose during the session on Tuesday, the Canadian dollar still fell a bit. Because of this, we believe that this pair continues to climb higher as we lose value in the Canadian currency. Pullbacks at this point in time should continue to offer call buying opportunities just as a break above the top of the range during the session on Tuesday.
DAX continues to pressure €11,000
The German market continues to pressure the €11,000 level, as it has been fairly resistive. If we can break above the €11,000 level, we should continue to push the market much higher, reaching towards the €11,600 handle. Pullbacks at this point in time should continue to be buying opportunities as there should be plenty of support near the €10,750 level.
