During the session on Wednesday, we have a handful of Manufacturing PMI numbers coming out of England and the European Union, as well as employment numbers coming out of Germany. Because of this, we are watching the following 3 markets.

Gold

Gold markets rose again on Tuesday, using the $1250 level as support. It looks as if the call buyers are going to continue to jump into this market, and because of this it’s likely that call buyers will continue to be attracted to this market, and a break above the highs on Monday should be attractive to call buyers as well.

DAX

The €11,800 level offered support, and a break above the top of the range for the session should continue to attract call buyers. On a move above there, the market could very well reach towards the €12,000 level above. If we can break above there, the market should continue to go much higher over the longer term. Put buyers seem to be on the back heel.

EUR/GBP

The EUR/GBP pair tried to rally during the day on Tuesday, but failed just slightly. The market looks like it is trying to form a downtrend channel, so the first signs of exhaustion the put buyers should get involved. A breakdown below the 0.85 level signals that the put buyers are getting aggressive again, and perhaps will try to reach down to the 0.84 level.