EURGBP TECHS: Sights Are On The Bull Trigger
- RES 4: 0.8835 High May 3 2023
- RES 3: 0.8800 Round number resistance
- RES 2: 0.8769 High Jul 28 and the bull trigger
- RES 1: 0.8751 High Sep 25
- PRICE: 0.8728 @ 18:49 BST Sep 26
- SUP 1: 0.8659/8597 50-day EMA / Low Aug 14 and the bear trigger
- SUP 2: 0.8562 50.0% retracement May 29 - Jul 28 upleg
- SUP 3: 0.8540 Low Jun 30
- SUP 4: 0.8514 61.8% retracement May 29 - Jul 28 upleg
EURGBP is trading closer to its recent highs and a bullish theme remains intact. The latest recovery paves the way for an extension towards the bull trigger at 0.8769, the Jul 28 high. Clearance of this level would strengthen the bull theme. Support to watch lies at 0.8597, the Aug 14 low. A breach of this level would instead reinstate a recent bearish threat. First support is 0.8659, the 50-day EMA.
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SOFR OPTIONS: Late SOFR Calls
- +1,500 SFRM6/SFRU6 97.50/98.50/99.50 call fly strip, 14.0
- +2,000 SFRM6 96.87/97.18 call spd vs. 0QM6 97.25/97.50 call spd
AUSSIE 3-YEAR TECHS: (U5) Remains Above Support
- RES 3: 97.190 - High May 5 2023
- RES 2: 96.932 - 76.4% of Mar-Nov ‘23 bear leg
- RES 1: 96.860 - High Apr 07
- PRICE: 96.605 @ 19:37 BST Aug 29
- SUP 1: 96.450/95.900 - Low Jul 16 / Low Jan 14
- SUP 2: 95.760 - Low 14 Nov ‘24
- SUP 3: 95.480 - Low Jan 11 2023 and a major support
Aussie 3-yr futures are in consolidation mode and the contract is trading inside a range. A resumption of gain would further narrow the gap with resistance at 96.730, the Sep 17 ‘24 high, leaving 96.860 as the next key level. Any continuation lower would instead strengthen a bearish threat. This would refocus attention on 95.760, the 14 Nov ‘24 low. Conversely, a reversal higher would open 96.860, the Apr 7 high.
US STOCKS: Late Equities Roundup: Tech, Industrials, Discretionary Shares Weigh
- Stocks remain moderately weaker late Friday, inside ranges as indexes scale off this week's record or near record highs ahead of the weekend - not to mention month end position squaring. Currently, the DJIA trades down 121.93 points (-0.27%) at 45515.24, S&P E-Minis down 49.75 points (-0.76%) at 6467.75, Nasdaq down 267.5 points (-1.2%) at 21438.28.
- A mix of Information Technology, Industrials and Consumer Discretionary sector shares continued to lead the decline in late trade, chip makers weighing on the tech sector (partially tied to concerns over longer term AI support/need for high end chips): Dell Technologies -9.27%, Oracle -6.45%, Super Micro Computer -5.53% and Broadcom -4.38%.
- Lagging Industrials shares included: Caterpillar -4.22%, Axon Enterprise -3.70%, Uber Technologies -3.49% and Hubbell -3.23%. Weighing on the Discretionary sector: Ulta Beauty -6.78%, Tesla -3.73%, Norwegian Cruise Line -2.36% and eBay -2.09%.
- Meanwhile, Consumer Staples and Health Care sector shares continued to outperform: J M Smucker +3.18%, Brown-Forman +2.17%, Hershey Co +1.59% and General Mills +1.40%.
- Pharmaceuticals buoyed the Health Care sector: Molina Healthcare +2.67%, Elevance Health +2.49%, Centene Corp +1.87% and Quest Diagnostics +1.60%.
