EU CREDIT UPDATE: Alimentation Couche-Tard (ATDBCN; Baa1/BBB+/NR) Withdraws Bid

• RES 4: 5565.23 1.618 proj of the Apr 7 - 9 - 10 price swing   
• RES 3: 5516.00 High Mar 3 and the key bull trigger
• RES 2: 5475.00 High May 20
• RES 1: 5365.98 20-day EMA  
• PRICE: 5302.00 @ 06:34 BST Jun 17 
• SUP 1: 5242.00 Low Jun 13  
• SUP 2: 5178.00 Low May 6 
• SUP 3: 5081.61 38.2% retracement of the Apr 7 - May 20 bull leg
• SUP 4: 5055.00 Low Apr 30  

The latest pullback in the Eurostoxx 50 futures contract has resulted in a breach of the 50-day EMA at 5299.04. Price has also pierced 5255.00, the May 23 low. A clear break of both support points would signal a short-term top and highlight scope for a deeper retracement. This would open 5178.00, the May 6 low and 5081.16, a Fibonacci retracement. Initial resistance to watch is 5363.03, the 20-day EMA.

The EU is scheduled to hold a syndication while Germany, Spain and France will look to hold auctions this week. Slovakia already held an auction. We pencil in estimated gross issuance for the week of E30.0bln, up from E21.7bln last week.

For the full document with a recap of issuance so far this week, a look ahead to the rest of this week's and next week's issuance and a roundup of Q3 funding updates, click here.

• The EU will tap the 3.375% Oct-39 EU-bond (EU000A3LZ0X9) at its scheduled syndication this week. The transaction will take place today, subject to market conditions. MNI pencils in a transaction size of E5-9bln (point estimate E6bln).
• Germany will come to the market today to hold a Green auction, planning to sell E1bln of the 2.10% Apr-29 Green Bobl (ISIN: DE000BU35025) alongside E500mln of the 2.30% Feb-33 Green Bund (ISIN: DE000BU3Z005).
• Germany will return to the market to hold a 30-year Bund auction tomorrow. On offer will be E1.0bln of the 2.50% Aug-46 Bund (ISIN: DE0001102341) alongside E1.5bln of the 2.50% Aug-54 Bund (ISIN: DE000BU2D004).

• RES 4: 0.8624 High Apr 21    
• RES 3: 0.8592 61.8% retracement of the Apr 11 - May 29 downleg
• RES 2: 0.8566 High Apr 24 
• RES 1: 0.8547 High Jun 12
• PRICE: 0.8516 @ 06:44 BST Jun 17
• SUP 1: 0.8476/8450 Low Jun 12 / 50-day EMA 
• SUP 2: 0.8407/8356 Low Jun 4 / Low May 29 and the bear trigger 
• SUP 3: 0.8327 1.382 proj of the Apr 11 - 16 - 21 price swing
• SUP 4: 0.8316 Low Mar 28 and a key support

A bullish theme in EURGBP remains intact and last week’s gains reinforce current conditions. The cross remains above the 50-day EMA and the breach of the average highlights a stronger reversal. This signals scope for a climb towards 0.8592, a Fibonacci retracement. On the downside, support to watch lies at 0.8450, the 50-day EMA. Clearance of this level would highlight a possible reversal.