Light economic calendar today
For the most part, we have a fairly light economic calendar during the session on Wednesday. We have an estimated GDP number coming out of the United Kingdom, as well as Manufacturing Production. However, that will be a very localized set of announcements. We also have the WTI Crude Oil market possibly moving due to the Crude Oil Inventories announcement coming out of the United States, but for the most part we feel that the quite economic calendar will provide short-term trading opportunities in an otherwise steady market.
Silver breaks out
At this point in time, you can hardly doubt that silver has broken out. We've cleared the $15.50 level, and now have even broke above the $16 level at this point in time. However, there is a bit of clustering in this area from early June, so therefore a pullback is likely. Wait until we get those pullbacks in order to buy calls. At this point in time, the market may be a little bit ahead of itself.
FTSE looks resilient
The FTSE looks very resilient as we initially fell during the session on Tuesday, but bounced enough to form a hammer. It now looks as if the market is ready to go higher. A break above the top of the range for the session on Tuesday is more than reason enough to start buying calls as we should head towards the 6500 level.
USD/CAD looking soft
The USD/CAD pair looks soft at the moment as we initially tried to rally during the session on Tuesday but fell. However, we would warn you that there is a massive amount of support somewhere near the 1.30 handle. With this, we are call buyers on signs of support near that level. We would also buy calls on a break above the top of the range for the Tuesday session, and have no interest in buying puts until we break well below the 1.30 level.
GBP/JPY: Next resistance level at 184.00
The GBP/JPY is moving upwards for the last sessions. Near-term resistance set at 184.00, with a break above that on a daily closing basis exposing the level to move higher. We might be buyers of call options.
