AUDUSD TECHS: Bullish Outlook
- Bullish OutlookRES 4: 0.6759 High Oct 11 ‘24
- RES 3: 0.6723 High Oct 21 ‘24
- RES 2: 0.6707 High Sep 17 and a key resistance
- RES 1: 0.6686 High Dec 10
- PRICE: 0.6668 @ 08:00 GMT Dec 12
- SUP 1: 0.6627/6579 Low Dec 11 / 20-day EMA
- SUP 2: 0.6552 50-day EMA
- SUP 3: 0.6517 Low Nov 27
- SUP 4: 0.6466/21 Low Nov 26 / 21
A strong impulsive bull wave in AUDUSD remains intact and sights are on key resistance at 0.6707, the Sep 17 high and bull trigger. Note that MA studies have recently crossed and are in a bull-mode position, reinforcing current conditions. A breach of 0.6707 would strengthen a bull theme. From a near-term perspective, the trend is overbought. A pullback would allow this condition to unwind. Key support to watch is at 0.6579, the 20-day EMA.
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GILTS: Opening Calls
Gilt calls, 93.76/93.81.
EQUITIES: EU Cash Opening Calls - Set for New record high
The Attention turns to the European Cash Equities, Cash Estoxx (SX5E) is set to gap to a new all time record high.
The Banking Index (SX7E) already broke the 2009 high of 242.85 Yesterday after printing a 243.95 high, the best achieved level since October 2008.
There isn't much in terms of resistance at current level until the next Psychological level of 250.00.
- Calls: Estox 50: +0.64%, Dax: +0.83%, CAC: +0.56%, FTSE +0.27%, SMI +0.64%.
The Chart below is Pre Cash Open.
(Chart source: MNI/Bloomberg Finance LP).
GILT SYNDICATION: 1.75% Sep-38 linker preview
- There will only be one DMO operation this week with the syndicated tap of the 1.75% Sep-38 linker on offer with a transaction expected today.
- The last two conventional syndications in September and October of the new 10-year 4.75% Oct-35 gilt and long 15-year 5.25% Jan-41 gilt have both seen very strong demand.
- The syndication before that was the launch of the 1.75% Sep-38 linker for GBP5.5bln nominal on 10 June.
- This was also a very well received syndication with books of GBP61.3bln and pricing at the tighter end of guidance at the 1.125% Nov-37 linker plus 11.75bp.
- We expect to see further strong demand, albeit with books potentially a little smaller and a transaction size that is similar or marginally smaller at GBP4.5-5.5bln.
- Timing: Books are expected to open at either 8:30GMT or 9:00GMT and then to remain open for an hour. The syndication size will then likely be confirmed around 20-60 minutes after books close with pricing expected around lunchtime.
