BRENT TECHS: (M6) Corrective Pullback

Austria and Germany will hold auctions today while Germany, Portugal, Spain, Italy and Belgium will all look to hold auctions later this week. We look for gross issuance of E24.8bln for the week, up from E22.0bln last week.

For the full document with a look ahead to issuance through the remainder of this week and next week click here.

• Austria will kick off auction issuance for the week this morning with a combined E2.3bln of the 3.45% Oct-30 RAGB (ISIN: AT0000A38239) and the on-the-run 10-year 3.20% Feb-36 RAGB (ISIN: AT0000A3RVH9) on offer.
• Germany will also come to the market this morning to hold a Green auction with E750mln of the 2.50% Feb-35 Green Bund (ISIN: DE000BU3Z047) on offer alongside E750mln of the 0% Aug-50 Green Bund (ISIN: DE0001030724).

• RES 4: 161.95 High Jul 3 ‘24 and a major resistance
• RES 3: 161.46 1.618 proj of the Jan 27 - Feb  - 12 price swing
• RES 2: 160.79 1.500 proj of the Jan 27 - Feb  - 12 price swing
• RES 1: 160.46 High Mar 30 and the bull trigger
• PRICE: 159.79 @ 07:00 BST Apr 7  
• SUP 1: 158.28 Low Apr 1
• SUP 2: 157.72 50-day EMA 
• SUP 3: 156.46 Low Mar 5 
• SUP 4: 155.85 Low Mar 2 

The trend in USDJPY remains bullish and short-term shallow pullbacks are considered corrective. Note that moving average studies are in a bull-mode position, highlighting a dominant medium-term uptrend. Sights are on 160.79 next, a Fibonacci projection. Initial firm support to watch lies at 157.72, the 50-day EMA. A clear break of this average would signal scope for a deeper retracement.

• MNI: SWEDEN MAR FLASH CPIF 1.59% Y/Y (1.71% FEB)
• SWEDEN MAR FLASH CPIF-XE 1.14% Y/Y (1.38% FEB)