On a day when the UK releases PPI and CPI numbers, and Germany releases the ZEW Economic Sentiment numbers, it’s likely that a lot of the focus will be on the European side of trading. Because of this, we are watching the following three assets:

EUR/USD

The EUR had a slightly volatile session during the day on Monday, as we continue to find a lot of resistance just above. There’s a bit of a “ceiling” at the 1.07 level so it’s likely that put buyers will be attracted to this market every time we make a move towards that direction. With this, volatility will be your friend if you keep an eye on the longer-term trend.

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GBP/USD

The British pound gap lower at the open of the week, reaching all the way down to the 1.20 level. However, we did bounce a bit as one would expect, gaps do tend to get filled, and it now looks as if the put buyers are going to jump back into the market at the first signs of resistance. Because of this, watching for put buying opportunities will more than likely pay off. The 1.20 level underneath appears to be very supportive.

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Silver

Silver markets had a choppy session on Monday, as we approach the $17 level. This is an area that should begin significant resistance on the first signs of exhaustion put buyers will probably jump into the marketplace. Alternately, if we can break above the $17.25 level, it’s likely that the call buyers will become more enthusiastic.

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