HUNGARY: Forint Reverses Tuesday’s Gains Amid Thin Local News Flow

• Gilt saw a slightly lower open vs the calls, this was driven by the tick lower in EGBs on the higher Equity Cash Open.
• Gilt futures was expected to somewhat outperforms, but it is so far sitting flat against the German 10yr on the spread.
• Respective initial support and resistance, stand at 91.86 20-day EMA , and 92.69 (Friday's high).

• USDCHF takes another small leg higher, a function of the Fall in the Swiss Index, SMI opened some 2% lower after coming back from a holiday, the Index has caught up following the Swiss tariff announcement.
• As noted earlier, while the CHF is the worst performer in G10 against the Dollar, USDCHF would need a rally all the way to 0.8161 to reverse Friday's NFP sell Off, the cross could now be eyeing a test to the 0.8100 handle.

• RES 4: 1.4111 Apr 10  
• RES 3: 1.4019 38.2% retracement of the Feb 3 - Jun 16 bear leg 
• RES 2: 1.3920 High May 21
• RES 1: 1.3879 High Aug 1
• PRICE: 1.3775 @ 08:06 BST Aug 4
• SUP 1: 1.3716/3557 20-day EMA / Low Jul 03
• SUP 2: 1.3540 Low Jun 16 and the bear trigger
• SUP 3: 1.3503 1.618 proj of the Feb 3 - 14 - Mar 4 price swing
• SUP 4: 1.3473 Low Oct 2 2024

A short-term bullish corrective phase in USDCAD remains in play despite sharp weakness Friday. On the recent run higher, price traded through the 50-day EMA at 1.3739 and this has been followed by a break of resistance at 1.3798, the Jun 23 high. Clearance of 1.3798 represents an important short-term bullish development, signaling scope for a stronger recovery. Sights are on 1.3920 next, the May 21 high. On the downside, initial firm support to watch lies at 1.3716, the 20-day EMA.