EUROPEAN FISCAL: "*SPAIN GOVT PLANS MINIMUM WAGE HIKE BEFORE ELECTIONS: [...]

• RES 4: 1.3733 High Feb 4
• RES 3: 1.3696 76.4% retracement of the Jan 27 - Jun 24 bear cycle
• RES 2: 1.3603/76 High Aug 27 / 21 and the bull trigger
• RES 1: 1.3568 High Sep 9
• PRICE: 1.3488 @ 06:39 BST Sep 16
• SUP 1: 1.3464 Low Sep 14 and 15
• SUP 2: 1.3408 50.0% retracement of the Jun 24 - Aug 21 bull leg 
• SUP 3: 1.3345 61.8% retracement of the Jun 24 - Aug 21 bull leg
• SUP 4: 1.3274 Low Jul 28

GBPUSD is trading at its recent lows. The pair has pierced support at the 50-day EMA, currently at 1.3492, and EMA marks a key short-term pivot level. A second important support lies at 1.3475, a trendline drawn from the Jun 24 low. This level has also been pierced. A clear break of both support points would highlight a stronger bear threat and open 1.3408, a Fibonacci retracement point. Initial firm resistance is 1.3568, the Sep 9 high.

• RES 4: 114.520 High Aug 25 and a key resistance  
• RES 3: 114.160 High Aug 27   
• RES 2: 113.570/820 High Sep 4 / Low Aug 20
• RES 1: 112.460/113.201 High Nov 11 / 20-day EMA   
• PRICE: 112.100 @ 06:17 BST Sep 16
• SUP 1: 111.890 Low Sep 15      
• SUP 2: 111.867 2.764 proj of the Aug 5 - 20 - 25 price swing
• SUP 3: 111.640 3.000 proj of the Aug 5 - 20 - 25 price swing
• SUP 4: 111.413 3.236 proj of the Aug 5 - 20 - 25 price swing

A downtrend in Bobl futures remains firmly in place. The contract is trading at its recent lows and a fresh cycle lows yesterday reinforces current conditions. Note that moving average studies on the continuation chart are in a bear-mode position. This continues to highlight a dominant downtrend. Sights are on 111.867, a Fibonacci projection. Initial firm resistance to watch is at 113.201, the 20-day EMA. Short-term gains would be considered corrective.