STIR: Slightly More Dovish Rhetoric From ECB Speakers

• RES 4: 92.55 High Nov 11 
• RES 3: 92.31 High Nov 12          
• RES 2: 92.00 Round number resistance
• RES 1: 91.78/93 High Dec 17 / High Nov 27      
• PRICE: 90.74 @ 08:02 GMT Dec 22
• SUP 1: 90.50 Low Dec 16       
• SUP 2: 90.28 Low Nov 21  
• SUP 3: 90.00 Round number support    
• SUP 4: 89.86 Low Nov 19 and the bear trigger     

Recent activity in Gilt futures highlights 90.50, the Dec 16 low, and 91.93, the Nov 27 high, as two important short-term directional triggers. A clear breach of support at 90.50 would signal scope for a deeper retracement towards 89.86, the Nov 19 low and a bear trigger. For bulls, a stronger resumption of gains and a breach of 91.93, would instead signal scope for a climb towards resistance at 92.55, the Nov 11 high.

• RES 4: 1.4051 High Nov 28  
• RES 3: 1.3920 50-day EMA
• RES 2: 1.3865 20-day EMA  
• RES 1: 1.3823 High Dec 11  
• PRICE: 1.3780 @ 08:01 GMT Dec 22
• SUP 1: 1.3730 Low Sep 17
• SUP 2: 1.3682 76.4% retracement of the Jun 16 - Nov 6 bull cycle
• SUP 3: 1.3637 Low Jul 25
• SUP 4: 1.3576 Low Jul 23  

A bear theme in USDCAD remains intact, reinforced by the recent move down and note that price is holding on to the bulk of its latest downleg. The latest pause appears to be a flag - a bearish continuation pattern. Scope is seen for an extension towards 1.3727 next, the Sep 17 low. Initial firm resistance to watch is 1.3865, the 20-day EMA. Short-term gains would be considered corrective and would allow an oversold condition to unwind.

Gilt Opening Calls, 90.64/90.66.