SOUTH KOREA: Country Wrap: Korean Cos to Invest in US

• RES 4: 107.475 High May 27
• RES 3: 107.430 High Jun 13
• RES 2: 107.365 High Jun 7 and key short-term resistance
• RES 1: 107.335 High Jul 16  
• PRICE: 107.325 @ 06:14 BST Jul 22
• SUP 1: 107.200/120 Low Jul 15 and 16 / Low Jul 11 and bear trigger
• SUP 2: 107.112 1.236 proj of the May 23 - 29 - 30 price swing
• SUP 3: 107.000 Round number support 
• SUP 4: 106.890 2.000 proj of the May 23 - 29 - 30 price swing

Schatz futures traded higher Monday, extending the recovery that started on Jul 11. Trend indicators continue to highlight a bear cycle and if correct, this suggests that short-term gains are corrective. Resistance to watch is 107.365, the Jun 7 high. A break would strengthen a bull theme. On the downside, a resumption of weakness would refocus attention on 107.120, the Jul 11 low and bear trigger. 

BUY 4180 of TUU5 traded at 103-23 1/8, post-time 15:10:48 AEST (DV01 $156,378). The contract is currently trading at 103-22 3/4, -0-00 1/4+ from closing levels.

• RES 4: 1.3835 High Oct 20 2021
• RES 3: 1.3681/3789 High Jul 04 / 01 and the bull trigger
• RES 2: 1.3620 High Jul 10
• RES 1: 1.3517 20-day EMA
• PRICE: 1.3472 @ 06:23 BST Jul 22
• SUP 1: 1.3365 Low Jul 16 and the short-term bear trigger 
• SUP 2: 1.3335 Low May 20
• SUP 3: 1.3245 Low May 19
• SUP 4: 1.3144 38.2% retracement of the Jan 13 - Jul 1 bull cycle   

GBPUSD continues to trade above its recent lows. For now, short-term gains appear corrective and a bear threat remains present. Recent weakness resulted in a break of trendline support currently at 1.3480 - drawn from the Jan 13 low. The breach strengthens a bear theme, exposing 1.3335 next, the May 20 low. Initial firm resistance to watch is 1.3517, the 20-day EMA. A clear break of this average is required to highlight a potential base.