PRECIOUS METALS: Little Appetite To Fade January's Rally In Gold and Silver

• Despite the higher-than-expected headline NFP change of +64k, the -105k adjustment in October certainly dampens the release. Additionally, the above consensus unemployment rate at 4.564% and lower-than-expected AHE contribute to the immediate extension lower for the US dollar.
• However, with the known uncertainty around the release, the low unrounded U/E rate, and specific focus on DOGE deferred resignations, the initial market reactions across the currency space were short-lived. Furthermore, with similarly important inflation data due Thursday, the bar for a meaningful dollar breakout may be high across the next 48 hours.
• USDJPY printed 154.40 following the release, trading to within 5pips of the December 05 low. However, the reversal higher for US yields has supported a 40 pip bounce for the pair in most recent trade. Overnight highs reside at 155.25 should the market be inclined to pressure short-term positioning.
• For GBPUSD, the initial spike higher to 1.3456 also fell short of the October 17 high at 1.3471, and spot is now 40 pips off the highs.

• RES 4: 1.1848 High Sep 18   
• RES 3: 1.1813 76.4% retracement of the Sep 17 - Nov 5 bear leg
• RES 2: 1.1779 High Oct 1
• RES 1: 1.1795 Intraday high 
• PRICE: 1.1769 @ 13:44 GMT Dec 16
• SUP 1: 1.1649 20-day EMA 
• SUP 2: 1.1591 Low Dec 2 
• SUP 3: 1.1556 Low Nov 26
• SUP 4: 1.1491 Low Nov 21 

A bull cycle in EURUSD remains intact and today’s gains reinforce this theme. The recent breach of key short-term resistance at 1.1656, the Nov 13 high and a bull trigger, highlighted a stronger reversal. Sights are on 1.1813 next, a Fibonacci retracement. Initial support to watch is 1.1649, the 20-day EMA and a pivot level. A clear breach of the EMA would be bearish and signal a possible reversal.

• +5,000 TUH6 104-12.5, buy through 104-12.25 post time offer at 0836:19ET, DV01 $ 199,000.
• The 2Y contract trades 104-11.62 last, however, as futures reverse initial post-data support