The Big Picture:
The Dax has gained for 5 consecutive weeks, rising 3,34% last week. This coming Friday sees an important options expiry date. Vital to expiry dates, is the observation, how the options market is positioned. Here, it is possible to see wether the market is long or short and at which basis price (strike). Should the DAX trade in direction of the predominant levels, traders need to act to counter/hedge possible losses. This can be done by shorting/buying DAX futures. These hedge activities can amplify market moves. Looking at this weeks options market, we can see that here are few open sell/put options above the level of 10700. Looking at the open buy/call options, we can see a different picture, here there are plenty of open positions at the level of 11000 which will needed to be hedged.In general, we expect upward pressure at level of 10700 and downward pressure around 10500.
Pre-Market direction of US Futures (07.00 CET)
The S&P is trading positive at +0.15%
The DAX is in an upward trend. Main resistance at 10,500 has been broken to the upside. Next resistance is seen at 10860, support at the breakout level of 10500. We expect a continuation of the upwards trend.
Euro / USD
The Euro is trading sideways in a large trend. Support is at 1,0822, resistance at 1,1429.
JPY / USD
The USD has turned positive against the Yen. Biggest support will be found at 100.31.
The USD is in the process of forming a quadruple bottom.
Mid term,Gold is trending upwards, short term we see a sideways move. The next major resistance is at 1375, support at 1300.
Oil is trending upwards. We expect a continuation of this trend
The S&P 500 traded down 0.08% on Friday. Retail Sales coming in worse than expected. Producer Prices were partially negative year on year. Inflation is below expectation, making a renewed focus on the subject of deflation likely. US bond markets traded in to positive territory. US Stock Markets were relatively buoyant, considering the weak data. The Nasdaq trading in positive territory. Chinese stocks start the week in a position of strength, whilst the Nikkei trading weaker. The USD against the Euro and Yen are unchanged. Gold and WTI Oil also starting on a positive note.
Today´s numbers (CET)
14:30 USA: Empire State Manufacturing
Company news :
No significant data expected
RoboForex Analytical Department
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