SCHATZ TECHS: (H6) Corrective Phase Extends
- RES 4: 107.000 Round number resistance
- RES 3: 106.945 High Dec 3 and a key resistance
- RES 2: 106.900 High Dec 5
- RES 1: 106.840 High Jan 6
- PRICE: 106.835 @ 06:29 GMT Jan 7
- SUP 1: 106.690 Low Dec 18 & 22
- SUP 2: 106.630 Low Dec 10 and the bear trigger
- SUP 3: 106.621 2.236 proj of the Nov 26 - Dec 2 - 3 minor price swing
- SUP 4: 106.600 2.382 proj of the Nov 26 - Dec 2 - 3 minor price swing
A bear theme in Schatz futures remains intact and short-term gains are considered corrective. On the continuation chart, moving average studies are in a bear-mode position, highlighting a dominant downtrend. A resumption of the trend would open 106.621 next, a Fibonacci projection. Resistance at the 20-day EMA, has been breached. This signal scope for an extension towards 106.900, the Dec 5 high.
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SCHATZ TECHS: (H6) Southbound
- RES 4: 106.975 High Dec 1
- RES 3: 106.945 High Dec 3 and a key short-term resistance
- RES 2: 106.885 Low Dec 2
- RES 1: 106.835 Intraday high
- PRICE: 106.790 @ 06:28 GMT Dec 8
- SUP 1: 106.787 3.236 proj of the Nov 21 - 24 - 26 minor price swing
- SUP 2: 106.776 3.382 proj of the Nov 21 - 24 - 26 minor price swing
- SUP 3: 106.768 3.500 proj of the Nov 21 - 24 - 26 minor price swing
- SUP 4: 106.759 3.618 proj of the Nov 21 - 24 - 26 minor price swing
A sharp sell-off in Schatz futures last week and a bearish start to this week’s session, confirms a continuation of a bear cycle that started mid-October. Note that on the continuation chart, MA studies are in a bear-mode position, highlighting a dominant downtrend. Sights are on 106.787 next, a Fibonacci projection. Key short-term resistance has been defined at 106.945, the Dec 3 high. A corrective bounce would allow an oversold trend condition to unwind.
EUROZONE T-BILL ISSUANCE: W/C December 8
Germany, the Netherlands, France, Spain, Belgium and Italy are due to sell bills this week. We expect issuance to be E2.53bln in first round operations, down from E28.0bln last week.
- This morning, Germany will look to sell E1.5bln of the 11-month Nov 18, 2026 Bubill.
- Also this morning, the Netherlands will look to issue E0.5-1.5bln of the 2.5-month Feb 26, 2026 DTC and E0.5-1.5bln of the 5.5-month May 28, 2026 DTC.
- This afternoon, France will look to come to the market with up to a combined E7.5bln of 14/21/27/51-week BTFs: E3.1-3.5bln of the new 14-week Mar 18, 2026 BTF, E0.0-0.4bln of the 21-week Jun 5, 2026 BTF, E1.5-1.9bln of the 27-week Jun 17, 2026 BTF and E1.3-1.7bln of the 51-week Dec 2, 2026 BTF.
- Tomorrow morning, Spain will look to sell the 3-month Mar 6, 2026 letras and the 9-month Sep 4, 2026 letras. The auction size will be announced today.
- Also tomorrow morning, Belgium will look to issue a combined E2.8-3.2bln of TCs: An indicative E1.2bln of the 3-month Mar 12, 2026 TC and an indicative E1.8bln of the new 12-month Dec 10, 2026 TC.
- Finally on Wednesday morning, Italy will look to come to the market with E9.0bln of the new 12-month Dec 14, 2026 BOT.
GBPUSD TECHS: Holding On To Its Recent Gains
- RES 4: 1.3471 High Oct 17
- RES 3: 1.3452 50.0% retracement of the Sep 17 - Nov 4 bear leg
- RES 2: 1.3416 High Oct 21
- RES 1: 1.3385 High Dec 04
- PRICE: 1.3330 @ 06:32 GMT Dec 8
- SUP 1: 1.3264 50-day EMA
- SUP 2: 1.3226 20-day EMA
- SUP 3: 1.3180/25 Low Dec 2 / Low Nov 26
- SUP 4: 1.3038/10 Low Nov 20 / Low Nov 4 & 5 and the bear trigger
A bull theme in GBPUSD remains intact and the pair is holding on to its recent gains. The breach of resistance around the 50-day EMA, at 1.3264, undermines a recent bearish theme and highlights a stronger reversal. This paves the way for an extension towards 1.3452, a Fibonacci retracement point. Initial firm support is seen at 1.3226, the 20-day EMA. A move below this average would be a bearish development.
