EURGBP TECHS: Has Entered Oversold Territory
- RES 4: 0.8835 High May 3
- RES 3: 0.8814 High May 4
- RES 2: 0.8736 50-day EMA
- RES 1: 0.8651/8685 High May 31 / 20-day EMA
- PRICE: 0.8589 @ 16:04 BST Jun 2
- SUP 1: 0.8567 Low Jun 1
- SUP 2: 0.8562 Low Dec 13 2022
- SUP 3: 0.8547 Low Dec 1 2022 and key support
- SUP 4: 0.8522 Low Aug 30 2022
EURGBP printed a fresh 2023 low Thursday and a fourth consecutive session of lower lows. The 14d RSI is technically oversold for the first time since March 2021. Note too that the DMA space also signals short-term downside momentum: the 50- and 200-dmas are on the verge of forming a death cross (50-dma < 200-dma). The focus is on 0.8562 next, the Dec 13 low. Initial firm resistance is at 0.8685 the 20-day EMA.
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US STOCKS: Equities Roundup: Marking Highs Ahead FOMC
Stocks extending modest session highs after paring support in morning trade. Generally quiet ahead the FOMC policy announcement at the top of the hour. DJIA are up DJIA up 47.93 points (0.14%) at 33731.37; S&P E-Mini Future up 14 points (0.34%) at 4150.75; Nasdaq up 64.4 points (0.5%) at 12144.58.
- SPX futures running below resistance of 4206.25 High May 1, a break would confirm a resumption of the uptrend and open 4223.00, the Feb 14 high. On the downside, Initial support to watch is 4098.34, the 50-day EMA.
- Quarterly earnings cycle resumes after the close, salient stocks include: Allstate, Equinix, QUALCOMM Inc, Cognizant Technology, Williams Cos, Albemarle Corp, MetLife Inc, Zillow Group Inc, Marathon Oil Corp, Ingersoll Rand Inc Etsy Inc, APA Corp.
GBPUSD TECHS: Trend Needle Still Points North
- RES 4: 1.2720 2.0% 10-dma envelope
- RES 3: 1.2667 High May 27 2022
- RES 2: 1.2599 High Jun 7 2022
- RES 1: 1.2584 High Apr 28 and May 1
- PRICE: 1.2530 @ 16:03 BST May 3
- SUP 1: 1.2438 20-day EMA
- SUP 2: 1.2353/45 Low Apr 17 / 10
- SUP 3: 1.2329 50-day EMA
- SUP 4: 1.2275 Low Apr 3
The trend outlook in GBPUSD is unchanged and remains bullish. Last Friday’s gains reinforced this theme - the pair traded higher to breach resistance at 1.2546, the Apr 14 high and bull trigger. This also confirmed a resumption of the uptrend and has opened 1.2599, the Jun 7 2022 high. Support to watch is at the 20-day EMA, at 1.2438. A clear break of it is required to suggest scope for a deeper correction.
US: FED Reverse Repo Operation
NY Fed reverse repo usage slips back to $2,258.222B w/ 102 counterparties, compares to prior $2,267.130B. Compares to high usage for 2023: $2,375.171B on Friday March 31, 2023; all-time record high of $2,553.716B reached December 30, 2022.
NY Federal Reserve/MNI
