EURUSD TECHS: Short-Term Conditions Remain Bullish
- RES 4: 1.0862 50.0% retracement of the Jul 18 - Oct 3 bear leg
- RES 3: 1.0809 High Sep 4
- RES 2: 1.0764 38.2% retracement of the Jul 18 - Oct 3 bear leg
- RES 1: 1.0756 High Nov 6
- PRICE: 1.0711 @ 16:27 GMT Nov 9
- SUP 1: 1.0659 50- day EMA
- SUP 2: 1.0629 20-day EMA
- SUP 3: 1.0517/0496 Low Nov 1/ 13
- SUP 4: 1.0448 Low Oct 03 and the bear trigger
A bullish theme in EURUSD remains intact and this week’s pullback appears to be a correction. A key short-term resistance at 1.0694, the Oct 24 high, has been breached. This break strengthens a bullish case and signals scope for a stronger short-term correction. Sights are on 1.0764, a Fibonacci retracement. Firm support is at 1.0517, the Nov 1 low, a break would be bearish. Initial support is 1.0659, the 50-day EMA.
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EURGBP TECHS: Signs of a Top
- RES 4: 0.8768 High May 5
- RES 3: 0.8736 50.0% retracement of the Feb 3 - Aug 23 downleg
- RES 2: 0.8719 High May 23
- RES 1: 0.8706 High Sep 26 and the bull trigger
- PRICE: 0.8644 @ 16:53 BST Oct 10
- SUP 1: 0.8634 Low Oct 9
- SUP 2: 0.8620/8569 50-day EMA / Low Sep 15 and a key support
- SUP 3: 0.8558 Low Sep 11
- SUP 4: 0.8524 Low Sep 06
EURGBP drifted lower into the Monday close, defying the bull cycle that had remained in play about the 20-day EMA. A close below this level at 0.8642 would be a bearish development and could signal a near-term top. Further losses expose 0.8630 initially ahead of 0.8569, the Sep 15 low and key support. Prices need to rise north of 0.8706 to re-initiate any bull cycle.
PIPELINE: $4B BPCE 4Pt Debt Launched
- Date $MM Issuer (Priced *, Launch #)
- 10/10 $4B #BPCE $1.1B 4NC3 +185, $300M 4NC3 SOFR+198, $1.25B 6NC5 +210, $1.35B 11NC10 +35
- 10/10 $4B #Energy Transfer $1B 3Y +130, $500M 5Y +150, $1B 7Y +175, $1.5B 10Y +190
- 10/10 $1B Civitas Resources 7NC3 8.75%a
- 10/10 $500M *General Mills WNG 5Y +103
- Expected to issue Wednesday
- 10/11 $500M JBIC WNG 5Y SOFR+62a
- 10/11 $Benchmark KFW 2Y SOFR+23a, 7Y SOFR+50a
US: NY Fed Reverse Repo Operation - New Cycle Low
Repo operation usage falls to new cycle low of $1,222.440B (lowest since mid-September 2021) w/98 counterparties vs. $1,283.461B in the prior session. The high for 2023 stands at $2,375.171B on Friday March 31, 2023; all-time record high of $2,553.716B reached December 30, 2022.
NY Federal Reserve/MNI
