During the day on Tuesday, we could get quite a bit of volatility in the US stock markets due to the Consumer Confidence numbers, but beyond that there isn’t much in the way of market moving information that we see at this moment.
USD/CHF
The USD/CHF pair initially tried to rally during the course of the day on Monday, but turn right back around to start falling again. It looks as if we are going to continue the downtrend that we have been in for some time, and with that being the case we believe that the market should continue to drop towards the 0.9650 level or so.
Silver
Silver initially tried to rally during the course of the day on Monday but found the area above to be far too exhaustive. With this being the case, the market ended up forming a shooting star which of course is a very negative candle, so we break down below the bottom of it we should then reach towards the $15 level. On the other hand, if we break above the top of the shooting star, that should send this market looking for the $16 level.
EUR/JPY breaking out
The EUR/JPY pair rose during the day on Monday, testing the 127 handle. It now looks as if we’re going to try to break out to the upside but there is quite a bit of volatility and noise just above. Because of this, we look for short-term pullbacks in order to buy calls for short-term trades only. We have no interest in buying puts, it looks like the market is starting to find quite a bit of strength.
