The EUR/USD pair is in fact trying to break down during the session on Monday, but with Memorial Day been celebrated in the United States there simply is not enough liquidity to push the market down for any real length of time. Because of this, we will have to watch this market during the session today and wait to see where we close at the end of the day. If we close above the 1.10 level, we feel that the market goes higher and heads towards the 1.12 handle. If we close below the 1.10 level, we feel that the market may grind its way down to the 1.08 level.

The S&P 500 of course wasn’t open for trading on Monday, but as long as we are above the 2120 level, we feel that this market has broken out of bed, and should then continue to be bought via calls. The Core Durable Goods Orders number came out during the session today and we feel that the S&P 500 should continue to go higher and of course we would be buyers of calls. If we break down below the 2120 level, we are not apt to buy puts quite yet.

Gold markets continue to be very tight, and therefore we are not overly impressed with the action at the moment. However, we feel that a break below the $1200 level would be very bearish, and have us buying puts. On the other hand, we can simply play the range back and forth over the next couple of sessions if we continue to simply bounce around in this very tight range. This of course favors very short-term binary options, but offers us a clear range between $1200 on the bottom, and the $1215 level on the top.