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

• RES 4: 122.56 0.764 proj of the Apr 9 - May 8 - 14 price swing (cont)
• RES 3: 121.88 0.618 proj of the Apr 9 - May 8 - 14 price swing (cont) 
• RES 2: 121.00 Round number resistance
• RES 1: 120.74 High Aug 5 and the bull trigger
• PRICE: 119.79 @ Close Oct 6
• SUP 1: 119.06/118.36 Low Sep 4 / 3         
• SUP 2: 118.00 Round number support
• SUP 3: 117.70 2.236 proj of the Aug 5 - 12 - 14 price swing  
• SUP 4: 117.36 2.500 proj of the Aug 5 - 12 - 14 price swing 

The primary trend condition in BTP futures is unchanged, it remains bullish and the most recent pullback appears to have been a correction. The strong rally that started Sep 3 reinforces a bull theme and signals the end of the larger corrective pullback between Aug 5 - Sep 3. Key resistance and the bull trigger is 120.74, the Aug 5 high. A break of this hurdle would confirm a resumption of the trend. Key support to watch lies at 118.36, the Sep 3 low.

• RES 4: 178.94 1.236 proj of the Jul 31 - Sep 29 - Oct 2 price swing  
• RES 3: 177.67 1.000 proj of the Jul 31 - Sep 29 - Oct 2 price swing 
• RES 2: 177.00 Round number resistance 
• RES 1: 176.35 High Oct 6      
• PRICE: 175.96 @ 06:58 BST Oct 7
• SUP 1: 173.92 Monday’s low
• SUP 2: 172.27 Low Oct 2 and key support   
• SUP 3: 171.12 Low Aug 28  
• SUP 4: 170.62 Low Aug 6   

The trend in EURJPY remains bullish and Monday’s strong start to this week’s session reinforces current conditions. The cross has cleared resistance at 175.13, the Sep 29 high, to confirm a resumption of the primary uptrend. This maintains the bullish sequence of higher highs and higher lows and opens the 177.00 handle next. On the downside, key short-term support has been defined at 172.27, the Oct 2 low.

• MNI: GERMANY AUG FACTORY ORDERS -0.8% M/M (VS -2.7% JUL)