Americans will be away at holiday

The Americans will be away today celebrating the Independence Day holiday, so having said that the market will be very short indeed. You will have to base most of your trading and the Asian and European sessions, as although some electronic markets will be left open later, quite frankly the liquidity will be almost nonexistent.

British pound showing strength

The GBP/USD pair fell initially during the day on Thursday, but bounced back above the 1.56 level. By doing so, the market formed a hammer which of course is one of the more bullish candlesticks that you can get on a chart. Simply put, we are call buyers on a break above the top of the candle for the session on Thursday.

Gold markets show resiliency

Even though the gold markets initially fell during the course of the day on Thursday, we ended up bouncing back above the 1163 level, which of course ended up making a hammer out of the day. The hammer of course is a very positive sign, and as a result if we can get back above the 1170 handle, we are call buyers and aiming for 1190.

USD/CAD pair showing possible pullback

The USD/CAD pair initially tried to rally during the course of the session on Thursday, but ended up forming a shooting star, one of the most bearish candlesticks that you can form. With that, on a break below the bottom of the trading range on Thursday, we would be put buyers and aiming for at least 1.25, if not 1.24. On the other hand, if we break above the top of the range, that’s a very bullish sign and we would be call buyers.