BUNDS: Testing session low into the Cash Open

• The German Bund was mostly quoted two ticks wide pre Cash Open, with little change in its range.
• The Contract trades circa Yesterday's mid range, and the initial support and resistance are unchanged, these stand at 130.00 (support) and 130.80 (resistance).
• The US Treasuries took the lead Yesterday, the 10yr Yield fell through 4.20%, but the support noted at 4.1942% held, printed a 4.1852% low Yesterday.
• Next support in TYU5 was seen at 111.22, and this has again held Yesterday during the reversal and the fall lower in Futures following the US ISM Beat.
• This support level is unchallenged so far Today.
• There are no Tier 1 Data out of Europe, and US ADP hasn't moved markets for some time, the main focus this Week was always the US NFP Tomorrow. Early focus is on the Heavy German Supply this Morning.
• SUPPLY: UK £5bn 2028 (Equates to ~14k Gilt), should have a limited impact, German €6bn 10yr is heavy (equates to 50.3k Bund) will weigh.
• SPEAKERS: ECB Guindos, Cipollone, Lane, Lagarde, BoE Taylor.

• RES 4: $85.00 - Round number resistance 
• RES 3: $81.99 - 2.764 proj of the Apr 9 - 23 - May 5 price swing
• RES 2: $80.72 - 2.618 proj of the Apr 9 - 23 - May 5 price swing
• RES 1: $72.66/79.40 - 50.0% of the Jun 23-30 range / High Jun 23
• PRICE: $67.24 @ 07:05 BST Jul 2
• SUP 1: $65.92 - Low Jun 30 
• SUP 2: $61.39 - Low May 30
• SUP 3: $58.00 - Low May 5
• SUP 4: $57.70 - Low Apr 9 and a key support   

Brent futures are unchanged and remain in consolidation mode. The contract traded sharply lower on Jun 23, and for now, maintains a softer tone. The move down has resulted in a breach of the 50-day EMA and note too that $66.17, the 61.8% retracement of the May 5 - Jun 23 bull leg, has been pierced. A continuation lower would expose $61.39 next, the May 30 low. Initial resistance to watch is $72.66, a Fibonacci retracement point. 

• RES 4: 122.71 2.764proj of the May 14 - 20 - 21 price swing
• RES 3: 122.35 2.500 proj of the May 14 - 20 - 21 price swing 
• RES 2: 122.00 Round number resistance
• RES 1: 121.73 High Jun 13 and the bull trigger 
• PRICE: 121.22 @ Close Jul 1 
• SUP 1: 120.09 Low Jun 23      
• SUP 2: 119.48 Low May 26 
• SUP 3: 118.87 Low May 21  
• SUP 4: 118.51 Low May 14 and key support 

The trend condition in BTP futures is unchanged, it remains bullish and recent weakness appears corrective. Gains in June reinforce a bull theme and maintain the price sequence of higher highs and higher lows. Sights are on the 122.00 handle next. Key support to watch is unchanged at 118.51, the May 14 low. A clear break of this level would highlight a reversal. First support is 120.09, the Jun 23  low.