UK mortgage approvals totalled 63.53K in March. This was above the 60K forecast.

The latest figure points to higher-than-expected activity in mortgage lending during the month. It compares the reported total with market expectations.

Mortgage Market Signals

This stronger-than-expected mortgage data suggests the UK housing market is heating up, which is a key sign of consumer confidence. It tells us that people are feeling secure enough to take on significant long-term debt. We see this as an indicator of broader economic resilience that many had underestimated.

The Bank of England will be watching this very closely as it weighs its next move on interest rates. After UK inflation proved unexpectedly stubborn in the first quarter of 2026, coming in at 3.1%, this housing strength dampens the case for a rate cut this summer. We should therefore consider positioning for interest rates to remain higher for longer than the market was pricing in yesterday.

For currency traders, this outlook is supportive of the pound sterling. A more hawkish central bank relative to the US Federal Reserve or the ECB will likely attract capital inflows. We should look at call options on GBP/USD, as the pair could test the 1.2850 resistance level it failed to break in February 2026.

This is a stark contrast to the housing market slowdown we observed throughout much of 2025, when approvals struggled to get above 50,000 amid economic uncertainty. This renewed activity points towards domestic-focused UK stocks, especially homebuilders and banks. We see potential in buying call options on the FTSE 250 index, which is more exposed to the UK economy than the more international FTSE 100.

Strategy And Risk

While the data is bullish, implied volatility on short-term SONIA options has ticked up, reflecting uncertainty about the timing of the Bank of England’s response. A cautious approach could involve using bull call spreads on UK banking ETFs. This strategy allows us to capture the upside potential from a stronger economy while limiting the initial cost and risk.

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Gold fell in early European trade on Friday, dropping below $4,600 after giving back part of Thursday’s rebound. It was set for a second weekly fall and stayed near a one-month low around $4,510.

Inflation worries rose amid Middle East tensions, with US-Iran talks stalled and crude oil prices staying high. This raised expectations that major central banks may take a more hawkish line, which put pressure on non-yielding gold.

Middle East Risk And Dollar Strength

Reports described a tougher US stance towards Iran, with continued strain near the Strait of Hormuz and the risk of more US military action. Safe-haven flows supported the US Dollar, which added headwinds for gold.

The Federal Reserve kept rates unchanged, but the decision had an unusually high number of dissents. US PCE inflation was hotter, and GDP growth improved, supporting the view that policy could stay restrictive for longer.

Even so, expectations for at least one Fed rate cut in 2026 rose from the prior day, which capped Dollar strength and offered some support to gold. Focus turns to US data including the ISM Manufacturing PMI, alongside Middle East headlines.

Technically, a move above $4,600 prompted short-covering, but gains stalled near $4,650 and the 38.2% Fibonacci level. Resistance is near $4,651 and $4,696, while support is around the 100-hour SMA near $4,624, then $4,595 and $4,505–$4,500.

Downside Pressure And Trading Approach

With gold falling below $4,600, the immediate pressure is clearly to the downside. The strong US dollar, bolstered by geopolitical tensions in the Middle East, is acting as a major headwind for the metal. This dynamic suggests that any rallies in gold may be short-lived opportunities to initiate bearish positions.

The latest jobs report from April showed a stronger-than-expected 215,000 new jobs, with wage growth holding at 3.9% year-over-year. This data reinforces the view that the Fed has little reason to rush into cutting rates. Consequently, Fed funds futures are now pricing in only a 55% chance of a single rate cut by year-end, down from 70% just a month ago.

Considering the downward pressure, we see traders looking at buying put options to hedge or speculate on further declines. A move towards the one-month low around $4,510 seems plausible if the upcoming ISM Manufacturing PMI also points to economic resilience. This strategy offers a defined risk compared to shorting futures directly in such a volatile environment.

However, the situation in the Strait of Hormuz remains a wildcard that could spark a sudden flight to safety into gold. Implied volatility in gold options has ticked up to an 8-week high of 18%, reflecting this uncertainty. Traders anticipating a sharp price swing, regardless of direction, might consider long straddle strategies to profit from a breakout.

We saw a similar pattern in late 2025 when tensions previously flared up in the region. Gold initially dipped on dollar strength before rallying over 4% in a single week once the conflict escalated directly. This historical precedent suggests that simply being short gold is a risky position without protection against a sudden reversal.

For those with a moderately bearish outlook, a bear put spread could be an efficient approach. One might buy a put option with a strike price near $4,595 and simultaneously sell a put with a lower strike, perhaps around $4,510. This structure profits from a move down to the recent lows while capping both the potential profit and the initial cost.

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Dow Jones futures rose 0.14% to near 49,900 in European trading on Friday. S&P 500 futures gained 0.12% to around 7,250, while Nasdaq 100 futures added 0.04% to about 27,600.

US stock futures moved up after Wall Street ended Thursday at record closes. The S&P 500 and Nasdaq 100 reached new highs and recorded their strongest monthly gains since 2020.

Futures Extend Record Rally

In Thursday’s session, the Dow Jones rose 1.62%, the S&P 500 gained 1.02%, and the Nasdaq 100 increased 0.89%. Moves were linked to company earnings and lower oil prices.

After the bell, Apple reported quarterly results above expectations. Attention then turned to Friday earnings from Chevron, Exxon Mobil, Colgate-Palmolive, Estée Lauder, and CBOE.

Markets also tracked US–Iran tensions. Donald Trump said the US would continue a naval blockade of Iranian ports and raised doubts about the Strait of Hormuz reopening soon.

Trump also criticised efforts in Congress to limit his war powers, including a Senate proposal rejected earlier on Thursday, according to Bloomberg. Iran’s Supreme Leader Mojtaba Khamenei said Iran would not give up nuclear or missile capabilities and would keep control of the strait.

Options Strategy And Risk Hedging

With the S&P 500 pushing record highs near 7,250, the market’s bullish momentum is undeniable. The CBOE Volatility Index (VIX) is currently trading near a low of 14, reflecting complacency driven by strong corporate earnings. This environment suggests that short-term call options on indices like the Nasdaq 100 could continue to perform well.

However, we must address the significant geopolitical risk from US-Iran tensions. The potential closure of the Strait of Hormuz, through which nearly 30% of global seaborne oil passes, presents a major threat to stability. This tail risk is not being fully reflected in current equity prices.

When we look back from 2025 at the market’s reaction to the Ukraine invasion in early 2022, we saw how swiftly such events can spike energy prices and trigger a broad market sell-off. That situation showed that volatility can return almost overnight. A similar dynamic could easily play out in the weeks ahead.

Therefore, we believe it is essential to buy protection against a potential downturn. Purchasing put options on broad market ETFs like SPY is a prudent hedge against the current geopolitical fragility. We are also considering VIX call options as a direct play on an anticipated spike in market fear.

At the same time, the situation creates a clear speculative opportunity in the energy sector. While oil prices have been easing, a prolonged blockade would undoubtedly send crude prices sharply higher. We see significant upside in call options for energy giants like Chevron and Exxon Mobil, which are reporting earnings today.

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Markets stayed volatile early Friday, even as many European markets were shut for the Labour Day holiday. Later, the ISM will release the US Manufacturing PMI for April.

USD/JPY rose above 160.70, the highest since July, before dropping sharply during European hours. Reuters cited two sources saying Japan intervened for the first time in nearly two years, and USD/JPY fell over 2% on Thursday.

Yen Intervention Claims Resurface

On Friday, USD/JPY moved back above 157.00 in Asia, then fell again in Europe to below 156.50. This added to talk of a second intervention.

Iran’s negotiator Mohammad Bagher Ghalibaf said it is “not possible” for Iran to open the Strait of Hormuz, citing ceasefire violations by the US and Israel. President Masoud Pezeshkian called the US naval siege of Iranian ports an “extension of military operations”.

The Associated Press said US President Donald Trump is looking at ways to end the Strait of Hormuz shutdown while keeping the blockade on Iranian ports. It also reported coordination with allies to raise the costs of Iran disrupting energy flows.

The ECB kept rates unchanged, while Reuters cited sources saying a June rise is expected and one more later if Brent stays above $100 and Hormuz disruption continues. EUR/USD traded near 1.1750 after rising about 0.5% on Thursday.

Central Banks And Market Repricing

The BoE held its bank rate at 3.75%, with one MPC vote for a 25 basis point rise; GBP/USD neared 1.3600 after nearly 1% gains on Thursday. The USD Index fell 0.9% Thursday and held near 98.00 Friday, while gold rose over 1.5% Thursday but slipped below $4,600 early Friday.

We are looking at a very different market landscape compared to what we saw this time last year. In May 2025, we saw the Japanese authorities directly intervene when the USD/JPY crossed 160, causing a sharp drop. With the pair now creeping back up toward 158 as of May 1, 2026, and the US-Japan 10-year yield spread still wide at over 350 basis points, derivatives traders should be pricing in a high probability of another intervention.

The geopolitical risk premium in energy markets has also faded significantly over the past twelve months. We recall the intense situation in the Strait of Hormuz in 2025, which helped keep Brent crude prices threatening the $100 mark. Today, with diplomatic channels having eased the standoff, Brent is trading at a more subdued $85 per barrel, reminding us that such premiums can evaporate quickly.

This easing of energy prices has completely changed the tone from central banks. We remember the European Central Bank was openly debating rate hikes last spring, but with recent Eurozone inflation figures now down to 2.4%, the market is pricing in rate cuts before the end of the year. This makes call options on the EUR/USD, which was trading near 1.1750 last year and is now near 1.0700, seem particularly unattractive without a major catalyst.

A similar story is unfolding in the UK, where the hawkish sentiment from the Bank of England in 2025 has given way to concerns over a stagnant economy. Last year, GBP/USD was testing highs near 1.3600 amid talk of rate hikes. With UK first-quarter GDP growth for 2026 coming in at just 0.1%, the pound is struggling to hold 1.2500, and long positions look vulnerable.

The broad US Dollar weakness we saw in May 2025, which pushed the DXY index to 98.00, has reversed course. The combination of a dovish turn from the ECB and BoE has provided a strong tailwind for the greenback. The DXY is now trading comfortably above 106.00, suggesting that puts on the Euro and Pound could be an effective way to play this renewed dollar strength.

Gold has also reflected this normalization of risk from the peak we saw last year. The rush into safe havens during the geopolitical flare-up saw Gold prices reach toward $4,600. Now that those specific fears have subsided, Gold is trading at a much lower $2,350 an ounce, highlighting how sensitive it is to crisis-driven speculation.

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Joachim Nagel, an ECB Governing Council member and President of the Deutsche Bundesbank, said the baseline scenario already includes a more restrictive monetary policy. He said a June response would be more appropriate if the outlook does not improve markedly.

The Euro showed no immediate move after the comments. EUR/USD was slightly higher near 1.1740, as the US Dollar weakened.

European Central Bank Role

The European Central Bank is the Eurozone’s central bank, based in Frankfurt, and it aims to keep inflation at around 2%. It mainly does this by adjusting interest rates, and the Governing Council takes decisions at eight meetings each year.

Quantitative easing involves creating Euros to buy assets such as government or corporate bonds, often leading to a weaker Euro. The ECB used QE during the 2009–11 Great Financial Crisis, in 2015, and during the Covid pandemic.

Quantitative tightening is the reversal of QE, used when recovery is under way and inflation rises. It includes ending net bond purchases and stopping reinvestment of maturing bond principal, which can support the Euro.

Based on the signal for a more restrictive monetary policy, we should anticipate the European Central Bank taking action at its June meeting. This view is strengthened by recent Eurostat data showing core inflation for the Eurozone stubbornly holding at 2.9% in April, remaining well above the ECB’s 2% target. The statement sets a clear timeline and suggests that only a significant economic improvement would prevent a hawkish move.

This expectation of a rate hike should lead to higher implied volatility for the Euro in the coming weeks. We are seeing this reflected in the derivatives market, where the cost of options on EUR/USD expiring after the June meeting has already ticked up by over 8% in the last week. Traders should therefore be prepared for larger price swings and consider strategies that benefit from this expected increase in movement.

Market Implications For Eurusd

Looking back, we saw the ECB remain cautious through much of 2025, hoping that inflationary pressures would ease without further intervention. That period of waiting now appears to be over, increasing the pressure for a decisive move to maintain credibility. This history suggests the June action may be more assertive than what we might have seen last year.

The potential for a stronger Euro is amplified by current weakness in the US Dollar. The latest US Non-Farm Payrolls report from April 2026 came in below expectations at 155,000, prompting speculation that the Federal Reserve may be nearing a pause in its own rate-hiking cycle. This policy divergence, with the ECB turning more hawkish as the Fed turns more dovish, presents a strong case for upside in the EUR/USD pair.

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EUR/JPY fell for a second day and traded near 183.00 in early European hours on Friday. The daily chart shows a bearish near-term tone, with price held below the nine-period and 50-period Exponential Moving Averages (EMAs).

The pair has pulled back from recent highs, and the 14-day Relative Strength Index (RSI) is 40.9. This points to downside pressure, without reaching oversold levels.

Key Support And Resistance Levels

Support is seen near 181.87, the 10-week low set on March 16. The next level is 180.81, a near five-month low from February 12.

Resistance sits at the 50-day EMA of 184.97, then the nine-day EMA at 185.59. A move above both averages could shift the near-term tone higher and open a test of 187.95, the all-time high from April 17.

An AI tool was used to help write the technical analysis section.

Given the bearish short-term outlook for EUR/JPY, we see the cross is trading below key moving averages, signaling weakness. With the RSI at 40.9, there appears to be more room for a downward move before conditions become oversold. This suggests that initiating bearish positions could be a prudent strategy in the coming days.

Risk Management And Alternate Scenarios

For traders using options, buying put options with a strike price near the 10-week low of 181.87 could be an effective way to play this expected decline. This strategy offers a defined risk while allowing for profit if the pair continues its descent toward the five-month low of 180.81. The premium paid for the option would be the maximum potential loss on the trade.

This technical view is supported by fundamental factors, as recent data from Destatis showed German industrial production unexpectedly fell by 0.5% in March, raising concerns about the Eurozone’s economic engine. Meanwhile, comments from Bank of Japan officials hint at a potential hawkish pivot, with April’s core inflation in Tokyo hitting 2.3%, slightly above expectations. This policy divergence is adding to the downward pressure on the EUR/JPY cross.

We remember the sharp JPY appreciation in late 2025 when global growth fears surfaced, pushing this cross down significantly in a short period. The current setup feels familiar, though the drivers are more focused on domestic policy divergence. The market seems to be pricing in a less accommodative Bank of Japan, which historically strengthens the yen.

However, we should stay disciplined and watch the key resistance levels closely. A move above the 50-day EMA at 184.97 would be our first signal that this bearish momentum is fading. Traders could place stop-loss orders just above this level to manage risk on any short positions.

If the cross reclaims those moving averages, we could consider buying call options with strikes around 186.00 to target a retest of the April high near 187.95. This would represent a significant reversal of the current trend. Such a move would invalidate the immediate bearish case and signal that buyers have regained control.

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Madis Müller, a member of the ECB Governing Council, said it is increasingly likely that the European Central Bank will need to raise interest rates. He made the comments on Friday.

Müller also said it is becoming clearer that energy prices will remain high. No timing or size of any potential rate increase was provided.

Rising Rate Expectations

After the remarks, EUR/USD was trading around 1.1735, up 0.03% on the day. The move was reported at the time of writing.

The renewed discussion about raising rates is gaining traction, and we need to take it seriously. With the latest Eurozone inflation data for April 2026 coming in at 2.9%, these hawkish statements are more than just talk. Our focus should be on how this will impact interest rate expectations and the EUR/USD, which is currently trading around 1.0850.

We are seeing traders adjust positions in derivatives markets, now pricing in a higher probability of an ECB rate hike by late summer. The Euribor futures curve is steepening, signalling that the market expects borrowing costs to rise sooner rather than later. This is a familiar pattern we last saw during the aggressive hiking cycle of 2022-2023.

Market Implications And Hedging

For the currency market, this outlook is supportive of the euro. Implied volatility in EUR/USD options is increasing, suggesting traders are preparing for a bigger move. We should consider strategies like buying euro call options to position for a potential rally towards the 1.1000 level.

This policy shift poses a risk to European equities, as higher rates make borrowing more expensive for companies. The VSTOXX index, a measure of equity market volatility, has already climbed above 18, reflecting growing uncertainty. Hedging equity portfolios with VSTOXX futures or buying put options on major indices could be a prudent move.

The persistent strength in energy prices is the key driver behind this inflation concern. European natural gas prices are up over 30% since the beginning of this year, a reminder of the supply pressures we faced in 2025. This backdrop makes it more difficult for the central bank to ignore inflation, strengthening the case for a rate increase in the coming weeks.

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EUR/USD moved higher on Friday as the US Dollar weakened, trading near 1.1742 and close to the week’s top at 1.1755. USD/JPY fell almost 200 pips within seconds in early European trading, after an alleged Japanese intervention during Labour Day conditions.

The wider Dollar drop lifted EUR/USD from Thursday’s low at 1.1655. The pair recovered on Thursday after Eurozone inflation data outweighed weaker GDP figures, and the ECB left rates unchanged while pointing to a possible near-term rise.

Policy Signals And Geopolitical Risk

Bundesbank president Joachim Nagel said the baseline outlook implies tighter policy and noted a possible rate rise in June. In the Middle East, the Strait of Hormuz is in its third month of blockade, with the US and Iran still exchanging threats and no stated plan to reopen it.

Oil remained above $100, with Brent at $113.94 at the time of writing, which may pressure Eurozone importers over time. Technically, EUR/USD has stayed in a roughly 100-pip band, with support above 1.1650 and resistance below 1.1750.

On the 4-hour chart, RSI is near 60 and MACD shows a widening green histogram. A break above 1.1755 could open 1.1790 and then 1.1850, while weakness below 1.1645 may target 1.1580 and 1.1500.

Looking back at this time in 2025, we saw the EUR/USD pair struggling to break the 1.1755 resistance level. The market was being driven by hints of a European Central Bank (ECB) rate hike and surprise interventions from Japan that weakened the dollar. This created a tense, tight trading range.

Outlook And Options Positioning

A year later, the situation has evolved significantly, as the ECB followed through on its hawkish stance with several rate hikes in late 2025. The EUR/USD is now trading substantially higher, near 1.2020, having broken out of that old range. The ECB’s main deposit rate, which was being held steady back then, now stands at 3.75%.

The geopolitical pressures from the Middle East have also eased, providing relief for the Eurozone economy. We have seen oil prices fall from over $113 per barrel during the Strait of Hormuz blockade in 2025 to a more manageable $85 today. Eurozone inflation has responded, dropping from a peak of 5.5% last year to the latest reading of 3.1%.

This environment suggests the strong upward momentum in the Euro may be slowing, as much of the good news is already priced in. With the US Federal Reserve rate at 4.50%, the interest rate advantage still lies with the dollar, likely capping further sharp gains. Therefore, selling out-of-the-money call options on EUR/USD above 1.2150 could be a prudent strategy to collect premium.

Implied volatility in the pair has decreased from the highs we saw during the 2025 rate hike cycle. This makes buying protective puts a relatively cheaper way to hedge long positions against any sudden dovish shift from the ECB. Any rallies toward the year’s highs could present good opportunities to purchase this type of insurance.

Given that major central banks now appear to be on hold, we can expect the pair to enter a new, higher-level range. Options strategies that profit from this stability, such as selling short-dated strangles, could be effective. Traders should watch for breaks of the current technical levels rather than expecting a continuation of last year’s strong trend.

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NZD/USD slipped below 0.5900 and traded near 0.5890 in early European dealings. The US Dollar firmed as Middle East tensions increased and the Strait of Hormuz remained blocked, which lifted demand for safer assets.

Reports said President Donald Trump was due to be briefed on plans for military strikes on Iran to push it back towards nuclear talks. An Iranian official said Iran would respond with “long and painful strikes” on US positions if attacks resumed, and Supreme Leader Mojtaba Khamenei referred to ending “the enemies’ abuses of the waterway” under new management of the strait.

Geopolitical Risk Drives Safe Haven Demand

The Federal Reserve kept rates at 3.5% to 3.75% at its April meeting. It was the first time four FOMC members dissented since October 1992, and the committee said inflation was elevated partly due to higher global energy prices.

US GDP growth weakened, which could limit US Dollar gains. The economy grew at an annualised 2.0% in Q1 2026, up from 0.5% previously but below the 2.3% forecast.

The NZD is influenced by New Zealand’s economic health, RBNZ policy, China’s demand, and dairy prices. The RBNZ targets inflation between 1% and 3%, near a 2% mid-point, while risk sentiment also affects the Kiwi.

With geopolitical tensions driving a flight to safety, we should anticipate continued strength in the US Dollar. The blockade of the Strait of Hormuz is the main story, pushing risk-sensitive currencies like the Kiwi lower. This safe-haven demand is currently overshadowing other economic data points.

Options And Volatility Trading Opportunities

We expect volatility to rise significantly in the coming weeks, creating opportunities for options traders. Historically, similar escalations in the Middle East, like the flare-ups we saw in 2019, have caused Brent crude futures to jump over 4% and the VIX volatility index to spike above 20. Traders should consider buying options to profit from these larger-than-usual price swings.

The Federal Reserve’s hawkish tone is providing a strong floor for the Greenback, even with the slightly disappointing 2.0% GDP print. The committee’s focus on elevated inflation, alongside the most divided vote we have seen since 1992, suggests a high bar for any policy easing. This underlying support for the dollar makes selling rallies in NZD/USD an attractive strategy.

On the other side of the pair, the New Zealand Dollar is struggling with its status as a risk-on currency. China, its largest trading partner, has recently shown signs of a slowing manufacturing sector, with its PMI dipping to 49.8 last month. Furthermore, the Global Dairy Trade index has seen a 3.5% decline in the last two auctions, directly pressuring New Zealand’s export revenue.

Considering these factors, positioning for further downside in NZD/USD seems prudent. Traders could look at buying put options or establishing put spreads to target a move towards the 0.5800 support level. This approach allows for participation in further declines while clearly defining the maximum risk involved in the trade.

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Silver traded near $73.70 in Europe on Friday and stayed below the 20-day EMA while markets awaited fresh speeches from US Federal Reserve officials after the blackout period. The Fed kept rates unchanged at 3.50%–3.75% on Wednesday, and Jerome Powell said four members dissented, with three calling to move away from an easing bias.

The CME FedWatch tool indicates rates are expected to remain at current levels through year-end. Steady rates can limit gains in non-yielding assets such as silver.

Oil Prices And Inflation Pressure

Oil rose, with WTI up 0.5% above $103, linked to the prolonged closure of the Strait of Hormuz, a route for almost 20% of global energy supply. Higher energy prices have lifted inflation expectations and can reduce the scope for easier monetary policy, which can weigh on silver.

Technically, XAG/USD was around $73.70 and remained below the 20-period EMA at $75.38. RSI was 44.48; resistance sits near $75.38, with $80.00 above, while support levels include $70.86 and $68.28.

With the Federal Reserve holding interest rates steady in the 3.50%-3.75% range, we see continued headwinds for non-yielding assets. The dissent from three committee members signals a firm anti-inflationary stance, which will likely cap any significant rallies in silver. This suggests that the path of least resistance for silver in the near term is downwards.

This view is reinforced by the latest economic data from April 2026, which showed the Consumer Price Index (CPI) unexpectedly ticking up to 3.6% year-over-year. This persistent inflation gives the Fed little reason to consider easing policy, making the dollar more attractive and weighing on silver prices. For derivative traders, this strengthens the case for bearish positions.

Industrial Demand And Macro Signals

Furthermore, industrial demand appears to be softening, another bearish signal for silver. The most recent S&P Global US Manufacturing PMI for April 2026 registered at 49.9, indicating a slight contraction in factory activity. Weaker industrial consumption, which accounts for over half of silver demand, reduces fundamental support for the metal’s price.

The geopolitical situation, particularly the prolonged closure of the Strait of Hormuz which we have seen since late 2025, is keeping WTI oil prices elevated above $103. These high energy costs feed directly into inflation, complicating the Fed’s job and forcing it to maintain a hawkish posture. This environment is broadly negative for precious metals that don’t offer a yield.

From a trading perspective, we should consider buying put options or establishing short positions on silver futures, especially if the price breaks below the key $70.86 support level. The technical chart suggests the next major target on the downside would be the April 7 low of $68.28. The current price action below the 20-day EMA at $75.38 confirms our bearish bias.

However, we are also watching the Gold/Silver ratio, which is currently elevated at 92:1, significantly above the average we saw through 2025. This historically high ratio could suggest silver is undervalued relative to gold, presenting a potential pairs trading opportunity. Traders might consider a long silver, short gold position to hedge against a broader market shift.

Given the number of upcoming speeches from Fed officials and the unresolved Middle East tensions, implied volatility is likely to rise. This makes strategies like buying straddles attractive for those who anticipate a significant price move but are uncertain of the direction. Such a strategy would profit from a sharp break either above resistance at $75.38 or below support at $70.86.

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