Canada to take focus
During the session on Wednesday, we have very little in the way of economic announcements to move the market. The Bank of Canada has an interest rate decision, which of course is localized to the Canadian dollar, and we have the Crude Oil Inventories number coming out of America.
Oil looking healthy
With this being said, the WTI Crude Oil market does look like it is somewhat supported just below, so we are buyers of calls. We think that the WTI Crude Oil market will continue to try to build enough momentum to finally break above the $51 level. We are bullish of this market but recognize that there will be quite a bit of volatility, meaning that you should focus on short-term charts.
USD/CAD pair continues to consolidate above massive support
The USD/CAD pair fell significantly during the course of the session on Tuesday, but continues its movement within the consolidation area that we have been paying attention to. We believe that the support extends all the way down to the 1.28 handle, and with the Canadians releasing an interest rate decision today, it is likely we will get some volatility. Any signs of dovish attitude out of the central bank should send this market higher, giving us an opportunity to buy supportive candles. We have no interest in buying puts until we get below the 1.28 handle.
S&P 500 continues to show real strength
The S&P 500 fell initially during the course of the session on Tuesday, but found enough support to form a hammer yet again. With that being the case, the market continues to show real strength, and as a result we are call buyers as this market should then reach towards the 2080 handle. We have no interest whatsoever in buying puts as this market looks very strong.
