EURUSD TECHS: Bull Cycle Intact
- RES 4: 1.1625 1.500 proj of the Feb 28 - Mar 18 - 27 price swing
- RES 3: 1.1608 High Nov 9 2021
- RES 2: 1.1573 High Apr 21 and the bull trigger
- RES 1: 1.1455 High Jun 03
- PRICE: 1.1424 @ 16:20 BST Jun 4
- SUP 1: 1.1313 20-day EMA
- SUP 2: 1.1190/1.1065 50-day EMA and a pivot level / Low May 12
- SUP 3: 1.1026 38.2% retracement of the Feb 3 - Apr 21 bull cycle
- SUP 4: 1.0943 Low Apr 10
A bullish theme in EURUSD remains intact despite yesterday’s pullback. The recent breach of 1.1419, the May 26 high, confirms a resumption of the trend and opens 1.1573, the Apr 21 high and bull trigger. Moving average studies remain in a bull-mode position, highlighting a clear uptrend. Support to watch lies at 1.1190, the 50-day EMA. A clear break of this average would undermine the bull theme and signal scope for a deeper retracement.
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EURUSD TECHS: Corrective Cycle Remains In Play
- RES 4: 1.1696 1.618 proj of the Feb 28 - Mar 18 - 27 price swing
- RES 3: 1.1625 1.500 proj of the Feb 28 - Mar 18 - 27 price swing
- RES 2: 1.1608 High Nov 9 2021
- RES 1: 1.1440/1573 High Apr 23 / 21 and the bull trigger
- PRICE: 1.1353 @ 14:59 BST May 5
- SUP 1: 1.1264 20-day EMA and a key support
- SUP 2: 1.1144 High APr 3
- SUP 3: 1.1036 50-day EMA and a pivot level
- SUP 4: 1.0805 Low Apr 3
A corrective cycle in EURUSD remains in play. The trend structure is unchanged, it remains bullish. MA studies are in a bull-mode position signalling a dominant uptrend, and the latest move down is allowing an overbought condition to unwind. A resumption of gains would open 1.1608, the Nov 9 2021 high. Initial key support to watch is the 20-day EMA, at 1.1264. A break of this average would signal scope for a deeper pullback.
PIPELINE: Corporate Bond Update: Guidance Update
Expect corporate supply to issue soon after this afternoon's Tsy 3Y auction at the top of the hour.
- Date $MM Issuer (Priced *, Launch #)
- 05/05 $1.3B DTE Electric $300M 2Y +45, $500M 10Y +93, $500M 30Y +103
- 05/05 $Benchmark Apple Inc 3Y +25, 5Y +30, 7Y +40, 10Y +50
- 05/05 $Benchmark Comcast 7Y +85, 10Y +100, 30Y +122
- 05/05 $Benchmark General Motors 3Y +155, 5Y +170, 10Y +195
- 05/05 $Benchmark American Int Group 5Y +95, 10Y +112
- 05/05 $Benchmark Prologis +5Y +85, 10Y +103
- 05/05 $Benchmark ADP 7Y +63
US TSYS/SUPPLY: WI 3Y Holding Steady
- WI holding steady ahead of the $58B 3Y note auction (91282CND9) cut-off at 1300ET.
- 3Y WI is currently at 3.825%, 4.1bp cheap to last month's tail: 3.784% high yield vs. 3.760% WI
