EURUSD TECHS: Strong Close

• RES 4: 1.1923 2.000 proj of the Feb 28 - Mar 18 - 27 price swing
• RES 3: 1.1899 2.0% 10-dma envelope
• RES 2: 1.1851 High Sep 10 2021 
• RES 1: 1.1760/1829 High Jul 22 / 01 and the bull trigger 
• PRICE: 1.1734 @ 16:02 BST Jul 23
• SUP 1: 1.1660/1557 20-day EMA / Low Jul 17
• SUP 2: 1.1534 50-day EMA
• SUP 3: 1.1446 Low Jun 19
• SUP 4: 1.1405 Low Jun 11  

EURUSD maintains a firmer tone having recovered from 1.1557, the Jul 17 low. Recent weakness between Jul 1 - 17 appears to have been a correction. Support to watch lies at the 50-day EMA , at 1.1534. A clear break of this average is required to signal a stronger reversal. Note that trend indicators continue to highlight a dominant uptrend. A continuation higher would open 1.1829, the Jul 1 high and the bull trigger. 

Tsy futures remain weaker/near session lows (TYU5 at 111-01, -12) ahead of the $13B 20Y bond auction re-open (912810UL0) at 1300ET, WI is currently at 4.950%, .8bp cheap to last month's (small) tail.

Wednesday's Europe rates/bond options flow included:

• DUQ5 107.40/107.50/107.60 call fly paper paid 0.75 on 2K
• DUU5 107.00/107.20/107.40 call fly paper paid 5.5 on 4K
• ERZ5 98.25/37/50/62 call condor paper paid 3 on +6.5K
• SFIZ5 96.60/96.85/97.10 call fly vs. SFIZ5 96.05 puts paper buys the puts back vs. selling the calls fly package trades for 1.00 & 1.25 on 10K