EQUITIES: EU Cash opening calls

• RES 4: 3692.00 High Aug 26
• RES 3: 3678.00 High Sep 13 and a key resistance
• RES 2: 3590.00 High Oct 26
• RES 1: 3585.00 High Sep 14
• PRICE: 3581.00 @ 08:34 BST Oct 26
• SUP 1: 3418.00 Low Oct 21
• SUP 2: 3352.00 Low Oct 14
• SUP 3: 3251.00/3236.00 Low Oct 13 / 3 and a key support zone
• SUP 4: 3305.00 Low Oct 11

EUROSTOXX 50 futures maintain a firmer tone and the contract is holding on to its recent gains. The recent move higher has resulted in a break of both the 50-day EMA and resistance at 3492.00, the Oct 6 high and a bull trigger. Price has also breached trendline resistance drawn from the Aug 17 high. The trendline intersects at 3469.60 and the breach strengthens bullish conditions. Initial firm support is at 3418.00, the Oct 14 low.

• RES 4: 1.0268 High Aug 15
• RES 3: 1.0198 High Sep 12 and a key resistance
• RES 2: 1.0051 High Sep 20
• RES 1: 1.0027 High Oct 26
• PRICE: 1.0022 @ 08:45 BST Oct 26
• SUP 1: 0.9817 20-day EMA
• SUP 2: 0.9705/9633 Low Oct 21 / 13
• SUP 3: 0.9536 Low Sep 28 and key support
• SUP 4: 0.9501 1.382 projection of the Aug 10 - Sep 6 - 12 price swing

EURUSD is extending gains early Wednesday, topping the reversal trigger and key resistance at October 4th’s 0.9999. This week’s price action is potentially significant. The pair is trading above an important resistance level at 0.9874 - the top of the bear channel drawn from the Feb 10 high. A clear break of this level would highlight a channel breakout and a stronger bullish reversal. The focus turns to 1.0051, the Sep 20 high. Initial key support is at 0.9705.

• RES 4: 116.71 High Oct 4 and key resistance
• RES 3: 115.70 High Oct 5
• RES 2: 114.51 3.0% 10-dma envelope
• RES 1: 114.29 High Oct 26
• PRICE: 113.73 @ 08:29 BST Oct 26
• SUP 1: 108.82 Low Oct 21
• SUP 2: 108.13 Low Sep 28 and key support
• SUP 3: 107.27 2.382 proj of the Aug 25 - Sep 1 - 8 price swing
• SUP 4: 106.68 2.618 proj of the Aug 25 - Sep 1 - 8 price swing

The BTP futures trend condition remains bearish and short-term gains are considered corrective for now. The reversal from 116.71, Oct 4 high, signals the end of the Sep 28 - Oct 4 corrective cycle. A resumption of weakness would open the key support and bear trigger at 108.13, Sep 28 low. Clearance of this level would confirm a resumption of the broader downtrend. 116.71 marks the key resistance.