EGB OPTIONS: Bund call spread buyer

On offer today:

• E0.75-1.00bln of the 1.65% Jul-32 OT (ISIN: PTOTEYOE0031)

Timing: Results will be available shortly after the auction closes at 1030 GMT / 1130 CET.

See PDF below for full auction preview:

MNI Auction Preview Portugal 230208.pdf

• RES 4: 1.3751 High Nov 4
• RES 3: 1.3705 Dec 16 and the bull trigger
• RES 2: 1.3665 High Jan 6
• RES 1: 1.3475/3521 High Feb 6 / 19 and key short-term resistance
• PRICE: 1.3380 @ 08:11 GMT Feb 8
• SUP 1: 1.3312/3262 Low Feb 3 / 2
• SUP 2: 1.3226 Low Nov 15 and bear trigger
• SUP 3: 1.3205 61.8% retracement of the Aug 11 - Oct 13 rally
• SUP 4: 1.3131 0.764 proj of the Oct 13 - Nov 15 - Dec 16 price swing

USDCAD remains above its recent low of 1.3262 on Feb 2. A bearish trend condition remains intact despite the recent climb and short-term gains are most likely a correction. A resumption of weakness and a break of 1.3262, the Feb 2 low, would strengthen bearish conditions and signal scope for a move towards 1.3226, the Nov 13 low and the bear trigger. On the upside, the pair needs to clear 1.3521, the Jan 19 high, to signal a reversal.