The announcements for the session on Thursday favor the US markets in general, especially considering the fact that the Unemployment Claims number is so important, and the Core PCE numbers. With that, we will be paying attention to America in general.

Looking at the WTI market, we pull back a little bit during the session on Wednesday, only to find that there is a significant amount of support just below. With that, we are buyers on the first signs of support, especially near the $59 level. With no interest in buying puts, because quite frankly we feel that the market will continue to consolidate at this point in time.

Click on picture to enlarge

The GBP/USD pair initially tried to rally during the day on Wednesday, but turned back around at the 1.58 level. Because of this, it appears that the market is getting ready to fall significantly, and with signs it is only a matter of time before we start reaching a bit lower. However, there is quite a bit of noise in the 1.56 level, so we think that the buyers may be somewhere in that vicinity. We are looking to play a bounce if we get it, but until then we are on the sidelines.

Click on picture to enlarge

The Dow Jones Industrial Average fell fairly hard during the session on Wednesday, testing the 18,000 handle. We believe that any sign of support between here and all the way down to the 17,700 level offers a call buying opportunity as we should continue to consolidate with an upward bias over the longer term.

Click on picture to enlarge

The USD/CHF pair is testing the downtrend trend-line, with that in mind we favour buying call options in case of close above the trend-line, near-term resistance at 0.9394. In case of a move back below the trend-line we could be buyers of put options

Click on picture to enlarge

The USD/JPY pair is trying to recovery after the dropped to 122.40. We would be buyers of calls for the USD/JPY as it closed above the trend-line. Near-term resistance is the 61.8% Fib at 124.42 with a break above that on a daily closing basis exposing the next level at 125.00. In case of a move below the support level at 123.25, we could be buyers of put option.

Click on picture to enlarge