LOOK AHEAD: Eurozone Timeline of Key Events (Times BST)

• RES 4: 1.1851 High Sep 10 2021
• RES 3: 1.1829 High Jul 01 and the bull trigger 
• RES 2: 1.1789 High Jul 24 
• RES 1: 1.1743 High Aug 22
• PRICE: 1.1631 @ 06:10 BST Sep 3
• SUP 1: 1.1574/1.1528 Low Aug 27 / Low Aug 5 
• SUP 2: 1.1392 Low Aug 1 and bear trigger 
• SUP 3: 1.1373 Low Jun 10 
• SUP 4: 1.1313 Low May 30 

Despite Tuesday’s sell-off in EURUSD, the trend set-up remains bullish and the pullback appears corrective. Note that the pair has recently pierced key support around the 50-day EMA, currently at 1.1612. A clear break of the average would signal scope for a deeper retracement and potentially expose key medium-term support at 1.1392, the Aug 1 low. Initial resistance to watch is 1.1743, the Aug 22 high. A break of it would be a bullish development.

• RES 4: 130.26 High Aug 8 
• RES 3: 130.06 High Aug 14 
• RES 2: 129.71/90 50-day EMA / High Aug 28
• RES 1: 129.42 20-day EMA 
• PRICE: 128.71 @ 05:50 BST Sep 3
• SUP 1: 128.64 Low Aug 15 and the bear trigger  
• SUP 2: 128.40 Low Apr 9
• SUP 3: 128.19 Low Mar 27 (cont) 
• SUP 4: 127.83 76.4% retracement of the Mar 11 - Apr 7 bull leg (cont)  

Bund futures are trading lower this week. The move down undermines a recent bullish theme and the contract is approaching support at 128.64, the Aug 15 low and a bear trigger. A break of this level would confirm a resumption of the downtrend and highlight a range breakout - the contract has traded in a range since April. This would open 128.40 next, the Apr 9 low. Key short-term resistance is at 129.90, the Aug 28 high.

The NIKKEI in Japan declined today as political uncertainty increased after Prime Minister Shigeru Ishiba’s key power broker announced his intention to resign with local media suggesting other key power brokers within the LDP are intending to quit. The move higher in developed market bond yields has seen a cautious day in Asia with China down across major bourses, whilst the bounce back in Jakarta continues. 

• The NIKKEI is down in the Tokyo trading day by -0.80%, after yesterday's gains of +0.29%
• The major bourses in China are all down with the Hang Seng down -0.40%, CSI 300 down -0.88%,  Shanghai down -0.96% and Shenzhen down -0.93%.
• The TAIEX in Taiwan is up marginally by +0.10%.
• The KOSPI has done very little today with gains of +0.08%
• In Malaysia, the FTSE Malay KLCI rose a mere +0.09%
• The Jakarta Composite is up +0.90% today after yesterday's gains of +0.85%.
• The Straits Times in Singapore is down -0.25% whilst the PSEi in the Philippines is down -0.80%
• The NIFT 50 has had a quiet start up just +0.08% after yesterday's losses of -0.18%