HUNGARY: Local Markets Remain Shut Following New Year's Day Closures

EUREX ROLL PACE (as of Yesterday):

• Buxl: 43%.
• Bund: 50%.
• Bobl: 60%.
• Schatz: 57%.
• BTP: 49%.
• BTS: 54%.
• OAT: 56%.

• RES 4: 1.4314 61.8% retracement of the Feb 3 - Jun 16 
• RES 3: 1.4211 Channel top drawn from Jul 23 low
• RES 2: 1.4140/67 High Nov 5 / 50.0% of the Feb 3 - Jun 16 bear leg
• RES 1: 1.4030/1.4131 20-day EMA / High Nov 21  
• PRICE: 1.3968 @ 08:03 GMT Dec 3
• SUP 1: 1.3939 Low Nov 28 
• SUP 2: 1.3935 Bull channel base drawn from the Jul 23 low
• SUP 3: 1.3888 Low Oct 29 and a key support 
• SUP 4: 1.3833 Low Sep 24  

A bear theme in USDCAD remains intact. Price has traded through the 50-day EMA and attention is to 1.3935, the base of a bull channel drawn from the Jul 23 low. A clear break of the channel base would highlight a stronger bear cycle. On the upside, a reversal higher is required to refocus attention on 1.4140, the Nov 5 high and  key resistance. Initial resistance to watch is 1.4030, 20-day EMA.

Westpac write “after jumping around a cent in response to the RBNZ’s hawkish MPS last week, NZD/USD has consolidated in the low 0.57s. We see justification for further gains towards 0.5800 multi-week, and possibly even higher”.

• They note that “the RBNZ’s shift in stance, effectively declaring the easing cycle complete, was supported by the recent evolution of the New Zealand economy. If this evolution continues, markets will price rate hikes to start even earlier than December 2026. In parallel, Fed pricing risks deeper rate cuts during the next few months, imparting a negative bias to the USD. Our trading tactic is thus to consider buying on any dips to around 0.5670 (a 50% corrective retracement)”.