EURJPY TECHS: Northbound
- RES 4: 184.34 2.000 proj of the Jul 31 - Sep 29 - Oct 2 price swing
- RES 3: 183.07 1.764 proj of the Jul 31 - Sep 29 - Oct 2 price swing
- RES 2: 182.75 Bull channel top drawn from the Feb 28 low
- RES 1: 182.01 Intraday high
- PRICE: 181.93 @ 14:42 GMT Nov 20
- SUP 1: 179.78 Low Nov 19
- SUP 2: 178.44/176.50 20- and 50-day EMA values
- SUP 3: 175.71 Low Nov 5
- SUP 4: 174.61 Bull channel support drawn from the Feb 28 low
A firm bull cycle in EURJPY remains intact and this week’s strong gains reinforce the bull theme. The move higher confirms a resumption of the uptrend and maintains the bullish price sequence of higher highs and higher lows. Sights are 182.75, the top of a bull channel drawn from the Feb 28 low. First key support lies at 178.44, the 20-day EMA. A pullback would be considered corrective.
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PRECIOUS METALS: Sharp Selloff Extends, Gold Narrowing Gap To Key Support
Today’s sharp sell-off in precious metals is extending. Spot gold is now down over 5% on the session at $4,120/oz, quickly narrowing the gap to key support at $4,021.6, the 20-day EMA. Today’s weakness, which doesn’t have an obvious fundamental trigger, is allowing an overbought condition (on a 14-day RSI basis) to swiftly unwind.
- Spot silver is down over 7.5% at typing, further reversing last week’s liquidity squeeze. Initial support at the 20-day EMA ($49.089) has been pierced. Palladium and platinum are also down 6-7%.
- Worth noting that today’s moves are largely isolated to precious metals. Major cryptocurrencies (Bitcoin, Ethereum) are lower on the session but to a much lesser extent (1-2%).
- This supports the idea that today’s moves are flow/momentum driven, with profit-taking/long cover at play after an extremely impressive rally since August.
OPTIONS: Expiries for Oct22 NY cut 1000ET (Source DTCC)
- EUR/USD: $1.1525(E732mln), $1.1595-00(E1.1bln), $1.1620-25(E586mln), $1.1640-50(E750mln) $1.1810-30(E1.1bln)
- USD/JPY: Y149.90-00($1.5bln), Y151.00($876mln), Y152.00($1.1bln)
- EUR/GBP: Gbp0.8740(E498mln)
- AUD/USD: $0.6535(A$516mln)
- NZD/USD: $0.5700(N$1.2bln)
- USD/CAD: C$1.3800($1.9bln), C$1.4085($551mln), C$1.4200($1.1bln)
- USD/CNY: Cny7.3000($749mln)
EUR: More EUR upside buyer via CME Option
EURUSD (6th Mar) 1.1800c, bought for 0.01410 in ~2.2k.
