EUROSTOXX50 TECHS: Price Signal Summary - EUROSTOXX50 Fut Support Remains Intact

• Australian monthly CPI came in lower-than-expected, which could call into question the RBA's next inflation outlook round, however the currency is again firmer off lows and holding the bulk of the recovery off Monday's 0.6373. This price actions favours this week's weakness as a false break below the bottom-end of the multi-month trend channel, and a reversion higher here would make 0.6552, the June 16 high and bull trigger, the primary upside target.
• USD/CHF remains within range of cycle lows after the solid outperformance posted from the beginning of the week. Having initially benefited from haven flows on the exchange of fire between Israel and Iran, the CHF has held the rally, keeping 0.8035 in sight as the next downside level in USD/CHF.
• Meanwhile, USD/JPY is recouping a small part of the sharp losses posted off the 148.03 high, putting prices back above Y145.50 in what's likely a corrective rally off the pullback lows. This week's price action has formed a shooting star candle pattern - which argues in favour of further S/T losses in the pair. The 50-dma marks the next downside level at 144.25, but we see the 20-day EMA at 144.81 as more materially important in the short-term. The level has been pierced, but a clear break of it would strengthen a bearish threat.
• May new home sales data is the sole US release Wednesday. This should keep focus on the second appearance from Fed's Powell this week, this time in front of the Senate Finance Committee. He struck a balanced tone on policy yesterday, however a mention from the Fed chair that rate cuts could come faster on "lower inflation, weaker labor" still elicited interest from markets, despite the Fed chair again implying September is the next 'Live' meeting.
• The ongoing NATO meeting in the Netherlands will be carefully watched for cohesion around Trump's latest narrative that the US has secured firmer military commitments from Europe, despite remaining signs of dissention among countries including Spain. The US President remains in NATO sessions until 1040ET, at which time he is scheduled to return to the White House. 

SX5E (18th July vs 15th Aug) 5250c, bought the Aug for 32 in 5k (suggest rolling Call).

Outperformance in the long end of the German swap curve (30s) with yesterday’s sell off in 30-Year spreads now completely reversed (both in conventional swap spreads and ASWs), as the impact of the DFA’s Q3 funding plan and accompanying commentary is unwound (some of the bearish details initially caught some off guard).

• Note that long end spread widening remains evident even as 30-Year yields move off session lows.
• 10-Year Bund yields failed to break below 2.50% during this morning’s rally.
• Commerzbank recommend using any relief rally “in Bunds as a selling opportunity today as supply prospects sink in”.
• Further out, they note that “given the revised Q3 calendar and our expectation for the Q4 adjustment, we now expect record gross Bund issuance of EUR293bln (from EUR265bln at the beginning of the year), which corresponds to a net issuance volume of EUR110bln”.