EM LATAM CREDIT: Brava Energia: Potential Petronas Field Acquisition - Positive

• Treasury futures remain weaker, little react after $58B 3Y note auction (91282CNU1) tails yet again: drawing 3.669% high yield vs. 3.662% WI; 2.53x bid-to-cover vs. 2.51x prior.
• Peripheral stats see indirect take-up slips to 53.99% vs. 54.11% prior; direct bidder take-up 28.13% from 29.38% prior; primary dealer take-up rises to 17.88% vs. 16.51% prior.
• The next 3Y auction is tentatively scheduled for September 9.

• US TSY 3Y NOTE AUCTION: HIGH YLD 3.669%; ALLOTMENT 72.30%
• US TSY 3Y NOTE AUCTION: DEALERS TAKE 17.88% OF COMPETITIVES
• US TSY 3Y NOTE AUCTION: DIRECTS TAKE 28.13% OF COMPETITIVES
• US TSY 3Y NOTE AUCTION: INDIRECTS TAKE 53.99% OF COMPETITIVES
• US TSY 3Y AUCTION: BID/CVR 2.53

• RES 4: 1.1851 High Sep 10 2021
• RES 3: 1.1829 High Jul 01 and the bull trigger 
• RES 2: 1.1789 High Jul 24 
• RES 1: 1.1617 20-day EMA
• PRICE: 1.1578 @ 16:43 BST Aug 5
• SUP 1: 1.1401 Low Jul 30 and a bear trigger
• SUP 2: 1.1373 Low Jun 10
• SUP 3: 1.1313 Low May 30
• SUP 4: 1.1184 38.2% retracement of the Feb 3 - Jul 1 bull cycle  

Despite Friday's rally and a late recovery into the Tuesday close, EURUSD maintains a bearish tone. The recent breach of key support at the 50-day EMA, at 1.1548, highlights a stronger reversal and the start of a correction. This opens 1.1373 next, the Jun 10 low. Firm resistance is seen at 1.1617, the 20-day EMA, where a break is required to signal a reversal. This week’s price action highlights a key short-term support and bear trigger at 1.1401, Jul 30 low. A break would resume the downtrend.