FOREX: Hammack Opposition to Sept Cut Boosts USD to New Daily High

• RES 4: 112-15   61.8% retracement of the Apr 7 - 11 sell-off
• RES 3: 112-12+ High Jul 1 and a bull trigger
• RES 2: 111-28 High Jul 3 
• RES 1: 111-13+   High Jul 21 & Jul 10 
• PRICE:‌‌ 111-11+ @ 16:10 BST Jul 22
• SUP 1: 110-08+ Low Jul 14 & 16        
• SUP 2: 110-03   76.4% retracement of the May 22 - Jul 1 bull leg
• SUP 3: 109-28   Low Jun 6 and 11
• SUP 4: 109.25   Low May 27

Treasury futures traded higher again Tuesday, extending the firm start to the week. The move higher has resulted in a break of the 20-day EMA, strengthening the recovery, and markets have met resistance at 111-13+, the Jul 10 high. A clear break of this hurdle would highlight a stronger reversal. Key support lies at 110-08+, the low on Jul 14 and 16. A move through this support would reinstate the recent bearish theme.     

Belgium will look to sell the following OLOs at its auction next Monday, with the target size set to be announced on Friday:

• the 2.60% Oct-30 OLO
• the 3.10% Jun-35 OLO
• the 3.50% Jun-55 OLO

• USD is being sold in recent trade - helping boost EUR/USD through yesterday's highs just a few minutes out from the 4pm WMR fix. The volume impact is evident here: very, very decent size crossing in the past few minutes: almost 10k contracts trade over ~5 minutes for a cash equivalent of ~$1.4bln