EU BASIC INDUSTRIES: Chems: Worth watching the OxyChem deal
• Berkshire Hathaway are close to buying Occidental Petroleum's chemicals business.
• $10bn deal for a unit with $5bn in sales.
• Given how badly the sector has been performing it may be worth considering the possibility of PE bids for others.
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EURJPY TECHS: MA Studies Highlight A Dominant Uptrend
- RES 4: 177.08 2.000 proj of the Feb 28 - Mar 18 - Apr 7 price swing
- RES 3: 175.43 High Jul 11 ‘24 and a key medium-term resistance
- RES 2: 174.86 1.764 proj of the Feb 28 - Mar 18 - Apr 7 price swing
- RES 1: 173.02/97 High Aug 13 / High Jul 28 and the bull trigger
- PRICE: 172.16 @ 07:05 BST Sep 1
- SUP 1: 170.69 50-day EMA
- SUP 2: 169.73/45 Low Jul 31 / 23.6% of the Feb 28 - Jul 28 bull leg
- SUP 3: 168.46 Low Jul 1
- SUP 4: 167.46 Low Jun 23
EURJPY continues to trade below its recent highs. The trend structure is bullish and key support to watch lies at the 50-day EMA at 170.69. A clear break of the average is required to highlight a stronger short-term bearish threat. Note that moving average studies are in a bull-mode position highlighting a primary uptrend. Key resistance to watch is the Jul 28 high of 173.97. Clearance of this level would confirm a continuation of the bull cycle.
GILT TECHS: (Z5) Bear Cycle Remains Intact
- RES 4: 92.15 High Aug 11
- RES 3: 92.06 High Aug 14
- RES 2: 91.45 High Aug 15
- RES 1: 91.24 High Aug 18 and a key near-term resistance
- PRICE: 90.52 @ Close Aug 29
- SUP 1: 90.22 Low Aug 27
- SUP 2: 90.11 Low May 22 and a key support
- SUP 3: 90.0089.99/ Psychological round number / Low Apr 9 (cont)
- SUP 4: 89.68 Low Jan 15 (cont)
A bear cycle in Gilt futures is in play and last week’s fresh cycle low reinforces current conditions. Note that on the continuation chart, moving average studies are in a bear-mode position, highlighting a clear downtrend - for now. First support to watch is 90.22, the Aug 26 low. A break would resume the bear leg and open the 90.00 handle. Initial resistance is at 91.24, the Aug 18 high.
USDJPY TECHS: Support Remains Exposed
- RES 4: 151.62 61.8% retracement of the Jan 10 - Apr 22 bear leg
- RES 3: 150.92 High Aug 1 and a key resistance
- RES 2: 149.81 76.4% retracement of the Aug 1 - 14 bear leg
- RES 1: 148.78/149.12 High Aug 22 / 61.8% of the Aug 1 - 14 bear leg
- PRICE: 146.93 @ 06:54 BST Sep 1
- SUP 1: 146.21 Low Aug 14
- SUP 2: 145.86 Low Jul 24
- SUP 3: 145.40 50% retracement of the Apr - Aug upleg
- SUP 4: 145.19 Trendline drawn from the Apr 22 low
A bear threat in USDJPY remains present and the pair is trading closer to its recent lows. The short-term bear trigger lies at 146.21, the Aug 14 low. Clearance of this level would resume a downtrend that started early August and pave the way for an extension towards 145.40, a Fibonacci retracement. For bulls, a resumption of gains would instead open 149.12, 61.8% of the Aug 1 - 14 bear leg. Key resistance is far off at 150.92, the Aug 1 high.
