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

• RES 4: 123.14 1.764 proj of the Sep 3 - 11 - 25 price swing
• RES 3: 122.81 1.618 proj of the Sep 3 - 11 - 25 price swing
• RES 2: 122.53 1.500 proj of the Sep 3 - 11 - 25 price swing
• RES 1: 122.00 Round number resistance 
• PRICE: 121.57 @ Close Oct 20
• SUP 1: 120.74 High Aug 5 and a recent breakout level         
• SUP 2: 120.59 20-day EMA 
• SUP 3: 119.48 Low Oct 7 
• SUP 4: 119.07 Low Sep 25t

BTP futures remain in a bull cycle and last week’s gains reinforce current conditions. The latest rally has resulted in a break of key resistance at 120.74, the Aug 5 high and a bull trigger. The breach also highlights a range breakout. Sights are on the 122.00 handle next. Initial firm support to watch is 120.74, the Aug 5 high. The contract is overbought, a pullback would allow this condition to unwind.

• RES 4: 154.39 76.4% retracement of the Jan 10 - Apr 22 bear leg
• RES 3: 153.82 1.618 proj of the Sep 17 - 26 - Oct 1 price swing
• RES 2: 152.61/153.27 High Oct 14 / 10 and the bull trigger   
• RES 1: 151.88 High Oct 15 
• PRICE: 151.54 @ 07:12 BST Oct 21
• SUP 1: 149.38 Low Oct 17
• SUP 2: 148.94 50-day EMA   
• SUP 3: 147.82 High Oct 3  
• SUP 4: 147.14 Trendline support drawn from the Apr 22 low 

The recovery from last Friday’s low in USDJPY is beginning to display a stronger bullish signal. The pair has found support below the 20-day EMA and note that Friday’s price pattern is a hammer candle formation. If correct, the pattern signals the end of a corrective pullback that started Oct 10, and  highlights the fact that support at the 50-day EMA, at 148.94, remains intact. The bull trigger is at 153.27, the Oct 10 high. The 50-day EMA is key support.

• RES 4: 93.76 High Jul 1 (cont)   
• RES 3: 93.41 High Jul 2 (cont)       
• RES 2: 93.30 1.236 proj of the Sep 3 - 11 - 26 price swing
• RES 1: 93.17 High Oct 17 
• PRICE: 92.67 @ Close Oct 20
• SUP 1: 92.07 Low Oct 15      
• SUP 2: 91.82 High Sep 24 and a recent breakout level 
• SUP 3: 91.51 20-day EMA
• SUP 4: 91.01 Low Oct 13    

A bull cycle in Gilt futures remains intact following the latest strong impulsive rally. Recent gains resulted in a breach of key resistance at 91.82, the Sep 24 high. The break strengthened a bull cycle and sights are on 93.30 next, a Fibonacci projection. Note that the trend is overbought and a retracement would allow this condition to unwind. Firm support to watch lies at 91.51, the 20-day EMA.