Daily Trading Opportunities - Wednesday, January 18
With the United States and the European Union releasing CPI numbers on Wednesday, and of course the employment numbers coming out of the United Kingdom, there could be quite a bit of volatility during the session. With this in mind, we pay attention to the following three assets:
EUR/USD
On Tuesday, the Euro rallied, spiking through the 1.07 level during the day. However, there is a significant amount of resistance starting at that level and extending to the 1.0750 handle. The fact that we pulled back slightly suggests that the put buyers are waiting, so signs of exhaustion could be put buying opportunities.
GBP/USD
Obviously, after the Theresa May comments about staying close to the EU, the British pound rallied rather significantly during the Tuesday session. However, there is a significant amount of resistance just above, and most certainly at the 1.25 handle. Signs of resistance should be call buyers jumping back into the marketplace.
Gold
Gold markets rallied after the US dollar fell on Tuesday, and now find themselves testing the $1220 handle. There is a significant amount of resistance between 1220 and 1225, so break above there would be rather bullish. Alternately, and exhaustive candle could show put buyers the way to get back into the market.