EURIBOR OPTIONS: Call spread

• RES 4: 176.82 1.764 proj of the May 3 - 15 - 16 price swing
• RES 3: 176.03 1.618 proj of the May 3 - 15 - 16 price swing
• RES 2: 173.92/175.43 61.8% of the Jul 11 - 12 sell-off / High Jul 11
• RES 1: 172.92 High Jul 16
• PRICE: 171.08 @ 14:38 BST Jul 17
• SUP 1: 170.75 Intraday low
• SUP 2: 170.42 Trendline drawn from the Dec 7 ‘23 low
• SUP 3: 169.13 Low Jun 19
• SUP 4: 167.53 Low Jun 14

The sharp sell-off in EURJPY on Jul 11, resulted in a breach of the 20-day EMA. The cross has traded lower again today and remains soft. For now, short-term weakness appears to be a correction. The move down has exposed key support at 170.42, a trendline drawn from the Dec 7 ‘23 low. A clear break of this line would highlight a reversal. Key resistance and the bull trigger is 175.43, Jun 11 high. Clearance of this hurdle resumes the uptrend.

• RES 4: 5786.66 3.50 proj of the Apr 19 - 29 - May 2 price swing
• RES 3: 5764.00 3.50 proj of the Apr 19 - 29 - May 2 price swing
• RES 2: 5741 34 3.382 proj of the Apr 19 - 29 - May 2 price swing
• RES 1: 5721.25 High Jul 16
• PRICE: 5656.75 @ 14:21 BST Jul 17
• SUP 1: 5593.47 20-day EMA
• SUP 2: 5502.75/5479.87 Low Jul 2 / 50-day EMA
• SUP 3: 5398.75 Low Jun 11
• SUP 4: 5267.75 Low May 31 and key support

The trend condition in S&P E-Minis is bullish and today’s move lower appears to be a correction - for now. The continuation higher last week and this week’s cycle high, confirms a resumption of the uptrend and maintains the bullish sequence of higher highs and higher lows. MA studies are in a clear bull-mode set-up too, highlighting positive market sentiment. Sights are on 5741.34, a Fibonacci projection. Firm support is at 5593.47 the 20-day EMA.