Manufacturing PMI numbers coming from both sides of the Atlantic

During the session on Friday, there will be Manufacturing PMI numbers coming out of Germany, France, the European Union, and of course the United States. With this, it appears that the markets will focus on transatlantic movements, and as a result we are paying attention to all things European and American.

EUR/GBP tries to rally, but faces significant resistance above

Looking at the EUR/GBP pair, you can see that we rally during the session on Thursday, but there is a significant amount of resistance at the 0.71 handle. If we can find a resistant candle in this area, we would be buyers of puts. On the other hand, if we can break above there, this would be a call buying opportunity as the market should then head to the 0.72 handle.

French markets find support

The French markets have been falling for the last couple of sessions, but we are near the previous high, so there should be buyers in this general vicinity. With this, we are looking for some type of supportive candle in order to start buying calls as the market should then head back towards the 5250 handle given enough time. We have no interest in buying puts, and believe that even if we break down a little from here, the 5000 level should offer quite a bit of buying pressure as well.

NASDAQ showing signs of support

The NASDAQ fell a bit during the course of the session on Thursday, but found support yet again. With this, the market ended up showing buying pressure and as a result we believe that the NASDAQ will probably be one of the first movers to the upside. We are buyers of calls above the 4640 handle.