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

• RES 4: 1.3661 High Sep 18    
• RES 3: 1.3557 76.4% retracement of the Sep 17 - Nov 4 bear leg 
• RES 2: 1.3527 High Oct 1
• RES 1: 1.3494 Intraday high 
• PRICE: 1.3487 @ 06:13 GMT Dec 23
• SUP 1: 1.3371 Low Dec 22
• SUP 2: 1.3306 50-day EMA
• SUP 3: 1.3180 Low Dec 2 
• SUP 4: 1.3125 Low Nov 26      

The trend condition in GBPUSD remains bullish and this week’s strong start reinforces current conditions. The pair has traded to a fresh short-term cycle high, confirming a resumption of the uptrend that started early November. Note that moving average studies have recently crossed and are in a bull-mode position, highlighting a dominant uptrend. Sights are on 1.3527, the Oct 1 high. Initial firm support is 1.3306, the 50-day EMA. 

• RES 4: 1.1919 - High Sep 17 and a key M/T resistance   
• RES 3: 1.1848 High Sep 18 
• RES 2: 1.1813 76.4% retracement of the Sep 17 - Nov 5 bear leg
• RES 1: 1.1804 High Dec 16 and a key short-term resistance 
• PRICE: 1.1775 @ 06:06 GMT Dec 23
• SUP 1: 1.1683 20-day EMA 
• SUP 2: 1.1649 50-day EMA 
• SUP 3: 1.1615 Low Dec 9 
• SUP 4: 1.1591 Low Dec 2

The trend in EURUSD remains bullish and Monday’s rally highlights the end of the recent corrective pullback. The first important support lies at 1.1683, the 20-day EMA. A clear breach of this average would signal scope for a deeper retracement, allowing an overbought condition to unwind. Key short-term resistance has been defined at 1.1804, the Dec 16 high. Clearance of this hurdle would confirm a resumption of the uptrend.

• RES 4: 128.75 High Dec 3 and a key resistance   
• RES 3: 128.40 Low Dec 2    
• RES 2: 127.91 20-day EMA 
• RES 1: 127.52 High Dec 19            
• PRICE: 127.17 @ 05:44 GMT Dec 23 
• SUP 1: 126.75 Low Dec 22          
• SUP 2: 126.53 Low Mar 11 (cont.) and a key support  
• SUP 3: 126.35 3.236 projection of the Nov 12 - 20 - 26 price swing
• SUP 4: 126.20 3.382 projection of the Nov 12 - 20 - 26 price swing

Bund futures remain in a clear downtrend and Monday’s fresh cycle low reinforces current conditions. The move lower confirms a resumption of the downtrend and maintains the price sequence of lower lows and lower highs. Sights are on 126.53 next, the Mar 11 low (cont.). Initial firm resistance is seen at 127.91, the 20-day EMA. A break of this average would signal the start of a corrective bounce.