We are watching the summer markets currently, because the $15.00 level has been so resistive. If we can break above there on a daily close, we would be call buyers as the market should then head to the $15.50 handle. On the other hand, if we get some type of resistive candle in this area, we would not hesitate to start buying puts as the market has been so well defined lately.
The GBP/USD pair is starting to show support near the 1.55 handle, as we formed a hammer on Friday, and it now looks like we are trying to break above the top of that hammer. If we get that move, we believe this market will then head towards the 1.57 level yet again as we continue to consolidate in what is typically one of the quieter parts of the year.
The FTSE fell hard during the course of the session on Monday, but found enough support at the 6650 level to turn things back around and form a bit of a hammer like candle. Regardless, it shows just how much support is below, and as a result we are buyers of calls on short-term pullbacks as the market should eventually reach towards the 6800 level.
The Australian Dollar declined against the US Dollar after test the 0.7443 level. We might be buyers of put options. Near-term support is at 0.7255, with a break below that on a daily closing basis exposing the support level at 0.7136. In case of a move above the 0.7380, we could be buyers of call options. Near-term resistance set at 0.7445.
The CAC 40 Prices may move higher after close above the 5180.55 level, with that in mind we might be buyers of call options. Near-term resistance is at 5217.71, with a break above that exposing the level at 5251.85. In case of a move below the 5180.56 we could be buyers of put options.
The DAX is trading above the 11521.77. We could be buyers of calls for the DAX as it closed above the support level at 11521.77. Near-term resistance is at 11675.43 with a break above that on a daily closing basis exposing the next level at 11807.76. In case of a move below the 11521.77, we could be buyers of puts. Near-term support set at 11393.72.
