Several announcements moving market on Wednesday
During the session on Wednesday, we get employment figures coming out of the United Kingdom, as well as retail sales figures coming out of the United States. Because of this, we think that there should be a bit of volatility in the markets overall.
USD/CAD shows quite a bit of violent action
The USD/CAD pair initially tried to rally during the course of the day on Tuesday, testing the 1.13 level. However, we pulled back to form a very negative looking candle. With this, we feel that the market is going to struggle to go higher, but at this point in time we are still above the vital 1.28 handle, so we are not comfortable buying puts quite yet. We think that it is only a matter of time before supportive candles reappear, which we would buy calls based upon.
FTSE forms a supportive candle and 6300
The FTSE initially fell during the course of the session on Tuesday, but found enough support at the 6300 level to turn things back around and form a nice-looking hammer. With this, we feel that the market is ready to go higher, and as a result we are buyers of calls on a break of the top the hammer.
Germany looks bullish
The DAX initially fell during the course of the session on Tuesday, but found enough support near the €10,000 level to form a bit of a hammer. The hammer of course is a very bullish sign, so we feel that pullbacks should continue to offer call buying opportunities.
