EURGBP TECHS: Trading At This Week’s Lows
- RES 4: 0.8749 50.0% retracement of the Feb 3 - Jun 19 downleg
- RES 3: 0.8719 High May 23
- RES 2: 0.8693/8701 100-dma / High Jul 19
- RES 1: 0.8637 High Jul 25
- PRICE: 0.8553 @ 16:05 BST Jul 27
- SUP 1: 0.8553 Intraday low
- SUP 2: 0.8519 1.0% 10-dma envelope
- SUP 3: 0.8504 Low Jul 11 and key support
- SUP 4: 0.8471 Low Aug 29 2022
EURGBP is trading at this week’s lows. Recent bearish price action threatens the bull theme - the cross has breached both the 20-day and 50-day EMAs, signalling a stronger reversal. The move lower has exposed 0.8504, the Jul 11 low and a key support. Initial firm resistance is at Tuesday’s high of 0.8637. Clearance of the 100-dma of 0.8693 and congestion resistance at 0.8719, the May 23 high, would reinstate a bullish theme.
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EURGBP TECHS: Trend Needle Points South
- RES 4: 0.8768 High May 5
- RES 3: 0.8719 High May 23
- RES 2: 0.8656 50-day EMA
- RES 1: 0.8636 High Jun 5
- PRICE: 0.8595 @ 16:17 BST Jun 27
- SUP 1: 0.8518 Low Jun 19 and the bear trigger
- SUP 2: 0.8479 1.0% 10-dma envelope
- SUP 3: 0.8454 76.4% retracement of the Mar - Sep 2022 bull cycle
- SUP 4: 0.8408 Low Aug 24 2023
The primary trend direction in EURGBP is unchanged and remains down. The pullback from Friday’s high confirms recent gains as corrective. Resistance at the 20-day EMA has been breached, however, price has remained below resistance at 0.8656, the 50-day EMA. A clear break of this average would highlight a stronger reversal. For bears, clearance of 0.8518, the Jun 19 low, would confirm a resumption of the trend.
US STOCKS: Equities Roundup: Bull Theme Intact, Autos, Durables, Chips Leading
- Stocks continue to march higher in late trade, after trading near the lowest levels since July 12 this morning, S&P E-Mini futures are currently up 47.5 points (1.09%) at 4417.75, DJIA up 221.77 points (0.66%) at 33936.36, Nasdaq up 217.1 points (1.6%) at 13553.05.
- Leading gainers: Consumer Discretionary and Information Technology sectors have bounced back from Monday's lows. Autos (Tesla +2.65%, Ford +1.95%, GM +1.8%) leading the former with household durables shares contributing: Newell Brands +7.75%. IT sector shares supported by strong showing in semiconductor stocks: Microchip +3.7%, Texas Inst +3.45%, Applied Materials +3.35%.
- Laggers: Health Care, Utilities and Energy sectors underperformed. Energy shares unwinding support over the last couple sessions as crude prices recede (WTI -1.25 at 68.12), Hess Energy -1.15%, Exxon Mobil -0.5%.
- The technical bull theme in S&P E-minis remains intact and the recent pullback appears to be a correction. The move lower is allowing a recent overbought condition to unwind. Initial key support lies at the 20-day EMA, at 4360.26.
- A break of this average would strengthen a short-term bearish theme and signal scope for a deeper pullback. On the upside, the bull trigger is 4493.75, the Jun 16 high. A break would open 4506.23 the top of a bull channel.
US: State Department To Announce Additional Measures Against Wagner Group
US State Department spokesperson Matthew Miller has told reporters that the US will announce new measures to hold the Russian paramilitary Wagner Group accountable this week.
- Miller says the US will continue to take actions against Wagner and will have "further announcements," in the "very near future." When pressed, Miller confirms that the measures will be announced this week.
- Miller says he doesn't have any assessments on where Wagner fighters may be now and whether or not they could return to the battlefield in Ukraine.
- Miller says that the measures against Wagner are in response to Wagner actions in Africa and are unrelated to this week's rebellion.
- At the White House, Deputy Press Secretary Olivia Dalton confirmed a short time ago that the US will transfer a new USD$500m security assistance package to Ukraine.
- Dalton says the package will include mine clearing equipment, armoured vehicles, artillery rounds, strengthen air defences, and additional HIMARS systems.
