OPTIONS: Flatteners And Bobl Combos
Wednesday's Europe rates/bond options flow included:
- RXN2 153.5c, bought for 8 in 3k
- RXQ2 150.50/151.00 cs, sold at 19.5 in 2k
- RXQ2 149/146/143p fly, bought for 55 in 2k
- RXU2 142.5/140.5/138.5p fly, bought for 9.5 in 5k
- DUN2 108.30 put bought for 5 in 9.6k
- DUN2 109.3/109.5cs sold at 3 in 3k vs RXN2 152/153.5cs, bought for 13 in 500
- OEN2 124.50/125.25cs 1x2, sold at 6.5 in 1.5k
- ERU2 99.50/99.375/99.25 2x3x1 put ladder sold at -4.5 in 15kx22.5kx7.5k
- ERZ2 98.375/98.00ps, bought for 4.5 in 10k
Large bobl rolling down Combo:
- OEN2 124/128 RR, sold the put at 56.5/57 in 25k
- OEN2 123/125 RR, bought the put for 7 in 12.5k
- OEN2 123/126 RR, bought the put for 20 in 18.75k
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GBPUSD TECHS: Bearish Theme
- RES 4: 1.2974 Low Apr 13 and a recent breakout level
- RES 3: 1.2877 High Apr 25
- RES 2: 1.2705/72 20-day EMA / High Apr 26
- RES 1: 1.2406 High May 9
- PRICE: 1.2364 @ 17:20 BST May 9
- SUP 1: 1.2252 Low Jun 29 2020
- SUP 2: 1.2200 Round number support
- SUP 3: 1.2162 Low May 22 2020
- SUP 4: 1.2081 76.4% retracement of the Mar ‘20 - Jun ‘21 uptrend
GBPUSD is trading at its recent lows. A bearish risk remains present following Thursday’s sharp sell-off. Last week's breach of 1.2412, Apr 28 low, confirms a recent shallow correction and a bear flag breakout on the daily frequency. The move also confirms a resumption of the downtrend and signals scope for weakness towards 1.2252 next, the Jun 29 2020 low. Key short-term resistance has been defined at 1.2638, the May 4 high.
EURUSD TECHS: Trend Direction Remains Down
- RES 4: 1.0936 High Apr 21 and a key resistance
- RES 3: 1.0852 High Apr 22
- RES 2: 1.0681/0758 20-day EMA / Low Apr 14 - recent breakout level
- RES 1: 1.0655 High Apr 27
- PRICE: 1.0555 @ 16:51 BST May 9
- SUP 1: 1.0472/54 Low Apr 28 and the bear trigger / Low Jan 1 2017
- SUP 2: 1.0390 Low Jan 4 2017
- SUP 3: 1.0341 Low Jan 3 2017 and a key support
- SUP 4: 1.0333 1.236 proj of the Feb 10 - Mar 7 - 31 price swing
EURUSD remains inside its recent range and the outlook remains bearish. The failure to hold on to recent gains highlights a shallow correction and the current consolidation appears to be a bear flag formation - a bearish continuation pattern. Moving average studies are in a bear mode condition, highlighting the current downtrend. A resumption of weakness would open 1.0454, the Feb 22 2017 low. Watch resistance at 1.0681, the 20-day EMA.
OPTIONS: Light Rates Flow To Start The Week
Monday's Europe rates / bond options flow included:
- ERZ2 99.62/99.75/99.875c fly, was sold at 0.75 in 3k
- SFIM2 98.55/98.70/98.85c fly, sold at 5.75 in 1k
