Looking at the upcoming Thursday session, the Bank of England has an interest rate decision as well as the Asset Purchase Facility numbers. Because of this, it’s very likely that the FTSE will be active during the day, and with that we will be paying attention to it. Interestingly enough, the market ended up forming a shooting star during the day on Wednesday, so that of course is a bearish sign. If we do pullback though, more than likely there will be plenty of sellers. Ultimately, we do believe that the market goes higher though, so any put buying opportunity on a break of the bottom of the shooting star would be a short-term opportunity at best. We feel much more comfortable buying calls below on supportive candles.
FTSE
The EUR/USD pair tried to rally during the course of the session on Wednesday, but turned back around to form a shooting star. The shooting star sitting on top of the 1.08 level of course is a bearish sign in this marketplace, sitting on top of support. In other words, if we can break below the 1.08 level we feel that this market will then head to the 1.05 level offering put buying opportunities.
WTI Crude Oil markets pullback a little bit during the session on Wednesday, signaling that the sellers are coming into the marketplace of the top of the range. We believe that this market will more than likely head back down to the $50 level in the short-term, offering short-term put buying opportunities in this market that is obviously in a downtrend anyway.