FOREX: Light USD Demand As London Settles In
Early London USD demand seems to be linked to core FI markets, with Bunds leading a rally there in recent trade. No headline flow of note. EUR/USD & GBP/USD through overnight lows, but still comfortably above respective Tuesday lows.
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BONDS: US 10yr Yield probes 4.60%
- Not much to discuss marketwise, EUREX is closed and as a reminder ICE/UK will be closing at 12.15GMT after futures open at 08.00GMT this Morning.
- The US will also be closing early (12.15ET) but Investors will continue to watch the Yield levels in the US and Europe when they reopen.
- The US 10yr Yield is still trading close to the 4.60% mark, which held last Week.
- Looking further out, next area of interest comes at 4.6357% in the 10yr, which would equate to 108.10.
- There are no Tier 1 data for Today and no Speakers.
GOLD TECHS: Monitoring Resistance At The 20-Day EMA
- RES 4: $2790.1 - High Oct 31 and the bull trigger
- RES 3: $2750.0 - High Nov 5
- RES 2: $2730.4 - 76.4% retracement of the Oct 31 - Nov 14 bear leg
- RES 1: $2640.0/2726.2 - 20-day EMA / High Dec 12
- PRICE: $2619.3 @ 06:59 GMT Dec 24
- SUP 1: $2583.6 - Low Dec 19
- SUP 2: $2564.4 - Low Nov 18
- SUP 3: $2536.9 - Low Nov 14 and a key support
- SUP 4: $2511.1 - Low Sep 12
Gold traded sharply lower on Dec 18. The move down undermines a recent bullish theme. A resumption of weakness would signal scope for an extension towards the key support at $2536.9, the Nov 14 low. Moving average studies are in a bull mode position highlighting a medium-term uptrend and this suggests that the latest sell-off is likely a correction. Initial pivot resistance is $2640.0, the 20-day EMA. A breach of this EMA would be positive for bulls.
USDCAD TECHS: MA Set-Up Highlights A Dominant Uptrend
- RES 4: 1.4578 2.0% 10-dma envelope
- RES 3: 1.4539 3.382 proj of the Oct 17 - Nov 1 - 6 price swing
- RES 2: 1.4508 3.236 proj of the Oct 17 - Nov 1 - 6 price swing
- RES 1: 1.4467 High Dec 19
- PRICE: 1.4385 @ 06:36 GMT Dec 24
- SUP 1: 1.4301 Low Dec 18
- SUP 2: 1.4209/4041 20- and 50-day EMA values
- SUP 3: 1.3928 Low Nov 25 and a key support
- SUP 4: 1.3822 Low Nov 6
USDCAD bulls remain in the driver’s seat and the pair is holding on to the bulk of its recent gains. The recent breach of 1.4178, the Nov 26 high, confirmed a resumption of the uptrend and note that moving average studies are in a bull-mode position, highlighting a dominant uptrend. Sights are on 1.4508 next, a Fibonacci projection level. Initial firm support to watch lies at 1.4209, the 20-day EMA. A pullback would be considered corrective.
