USDCAD TECHS: Directional Triggers Defined

• RES 4: 145.06 High Mar 8
• RES 3: 143.85 High Mar 10
• RES 2: 142.51 Low Mar 1
• RES 1: 140.86 20-day EMA
• PRICE: 138.36 @ Close Mar 22
• SUP 1: 137.94 Low Mar 22
• SUP 2: 137.52 Low May 18 2020 (cont)
• SUP 3: 136.86 Low May 13 2020 (cont)
• SUP 4: 136.13 61.8% retracement of the Mar ‘19 - Aug ‘21 bull cycle

BTP futures remain vulnerable. The contract has traded lower this week and cleared key support at 138.60, the Feb 16 low and a bear trigger. The clear break of this level confirms a resumption of the downtrend and highlights an extension of the broader bearish price sequence of lower lows and lower highs. The focus is on 137.52, the May 18 2020 low on the continuation chart. Resistance is seen at 140.86, the 20-day EMA.

Major Asia-Pac equity indices are flat to higher as high-beta and tech stocks across the region outperformed, following a positive lead from Wall St’s tech-led rally on Tuesday. Utilities and energy equities broadly lagged peers, as commodity and major crude benchmarks traded below Tuesday’s best levels in Asia-Pac dealing.

• The Nikkei 225 outpaced most regional peers for a second day to sit 2.9% firmer at writing, with 213 out of the index’s 225 constituents in the green. The JPY has continued to weaken with USD/JPY hitting fresh cycle highs at Y121.41 during the session, driving outperformance in large-caps and export-oriented names.
• The ASX200 struggled to extend the opening move higher, finishing 0.5% better off come the bell. Tech stocks (S&P/ASX All Technology Index: +2.3%) led gains, with rallies observed in healthcare equities as well, while energy and materials sub-indices underperformed their index peers.
• The Hang Seng is 1.6% better off, led by gains in China-based technology companies, with the Hang Seng Tech Index dealing 2.5% firmer at writing. Familiar large-cap names such as Alibaba and Xiaomi have lifted sentiment in the wider China-based tech space with announcements of share buyback schemes, while tech stocks have continued to find tailwinds from Chinese regulators recently announcing their intention to enact market-supportive measures.
• The CSI300 deals 0.4% firmer at typing, with gains in the consumer staples sector and healthcare equities offset by losses across virtually every other sector.
• U.S. e-mini equity index futures sit 0.1% to 0.2% higher at typing, operating a touch below the session’s best levels.

• RES 4: 125.85 High Mar 4
• RES 3: 124.60 High Mar 8
• RES 2: 123.52 High Mar 9
• RES 1: 122.72 High Mar 18 and a key near-term resistance
• PRICE: 120.42 @ Close Mar 22
• SUP 1: 120.29 Low Mar 21
• SUP 2: 120.00 Round number support
• SUP 3: 119.75 123.6% retracement of the Feb 15 - Mar 1 climb
• SUP 4: 118.92 138.2% retracement of the Feb 15 - Mar 1 climb

Gilt futures remain in a bear cycle following recent weakness and the extension of the pullback from the Mar 1 high of 126.81. Yesterday’s activity confirmed a break of key support at 121.10, the Feb 6 low. This marks a resumption of the broader downtrend and opens 120.00. Recent short-term gains were considered corrective and price action has defined a key short-term resistance at 122.72, Mar 18 high.