During the day on Monday, there’s always nothing on the economic calendar that is worth mentioning, so having said that we believe this will be a very technically driven day. That being said though, we have a lot of continuing trends that should be the theme of the session yet again.
EUR/USD pressing against downtrend line
The EUR/USD pair fell initially during the day on Friday in reaction to the better than anticipated jobs number, but if we can break above the downtrend line on the chart, it is very likely that the market will continue to go higher and reach back to the 1.1050 level yet again.
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DAX tries to rally, fails miserably
The DAX tried to rally during the session on Friday in reaction to the better than anticipated jobs number out of America, but as you can see the €10,200 level offered resistance, as you would expect. After all that was significant support previously, and now we have fallen back down and it looks as if we are going to continue to the downside. At this point in time, we like buying puts on short-term rallies in this marketplace.
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Gold showing resiliency
Gold markets initially fell after the rally in the US dollar due to the jobs number on Friday, but as you can see we bounced off of the $1090 level. Because of this, it looks like there is quite a bit of buying pressure as far as calls are concerned underneath this market. It’s very possible we continue to go higher, so we are willing to take short-term calls after short-term pullbacks. We think it will be very volatile on the way up, but it does look like gold is trying to make a statement now.
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