EURGBP TECHS: Monitoring Pivot Resistance
- RES 4: 1.3789 High Jul 1 and key resistance
- RES 3: 1.3726 High Sep 17
- RES 2: 1.3661 High Sep 18
- RES 1: 1.3537 High Sep 23 and a pivot level
- PRICE: 1.3411 @ 16:31 BST Oct 2
- SUP 1: 1.3324 Low Sep 25 and the bear trigger
- SUP 2: 1.3282 Low Aug 6
- SUP 3: 1.3254 Low Aug 4
- SUP 4: 1.3144 38.2% retracement of the Jan 13 - Jul 1 bull cycle
The bear cycle in GBPUSD that started Sep 17, remains in play and the latest bounce - for now - appears corrective. Initial key resistance to watch is 1.3537, the Sep 23 high and a pivot level. Clearance of this hurdle would signal a potential reversal. Recent weakness resulted in a break of a trendline drawn from the Aug 1 low. Note too that 1.3333, the Sep 3 low and a key support, has been pierced. This opens 1.3282 next, the Aug 6 low.
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OPTIONS: Euribor Call Spread Buying Continues
Tuesday's Europe rates/bonds options flow included:
- DUV5 107.20/107.10/106.90p ladder, sold at 3 in 4k
- DUX5 107.50c, bought for 5 in 3k
- ERH6 98.12/98.25/98.4375/98.5625c condor, bought for 3.25 in 5k
- ERM6 98.31/98.43cs, bought for 2.5 in 10k (40k all week)
- SFIU6 97.40/97.50cs, bought for 0.75 in 20k
FED: US TSY 52W BILL AUCTION: HIGH 3.660%(ALLOT 2.81%)
- US TSY 52W BILL AUCTION: HIGH 3.660%(ALLOT 2.81%)
- US TSY 52W BILL AUCTION: DEALERS TAKE 15.46% OF COMPETITIVES
- US TSY 52W BILL AUCTION: DIRECTS TAKE 2.30% OF COMPETITIVES
- US TSY 52W BILL AUCTION: INDIRECTS TAKE 82.24% OF COMPETITIVES
- US TSY 52W AUCTION: BID/CVR 3.82
EURUSD TECHS: Corrective Pullback
- RES 4: 1.1851 High Sep 10 2021
- RES 3: 1.1829 High Jul 01 and the bull trigger
- RES 2: 1.1789 High Jul 24
- RES 1: 1.1743 High Aug 22
- PRICE: 1.1663 @ 16:03 BST Sep 2
- SUP 1: 1.1574/1.1528 Low Aug 27 / Low Aug 5
- SUP 2: 1.1392 Low Aug 1 and bear trigger
- SUP 3: 1.1373 Low Jun 10
- SUP 4: 1.1313 Low May 30
Despite Tuesday’s sell-off in EURUSD, the trend set-up remains bullish and weakness is considered corrective. Note that the pair has recently pierced key support around the 50-day EMA, currently at 1.1611. A clear break of the average would signal scope for a deeper retracement and potentially expose key medium-term support at 1.1392, Aug 1 low. Key resistance and the bull trigger is 1.1829, Jul 1 high. A breach would resume the primary uptrend.
