EURUSD TECHS: Trendline Support Remains Intact
- RES 4: 1.1139 High Dec 28 and the bull trigger
- RES 3: 1.1077 76.4% retracement of the Dec 28 - Jan 5 sell-off
- RES 2: 1.1046 High Jan 2
- RES 1: 1.0998 High Jan 5
- PRICE: 1.0953 @ 16:19 GMT Jan 11
- SUP 1: 1.0908/77 Trendline drawn from the Nov 1 low / Low Jan 05
- SUP 2: 1.0793 50.0% retracement of the Oct - Dec bull leg
- SUP 3: 1.0724 Low Dec 8
- SUP 4: 1.0712 61.8% retracement of the Oct - Dec bull leg
EURUSD remains inside its recent range. Trendline support - at 1.0908 - drawn off the Nov 1 low remains intact and MA studies are in a bull mode position. This highlights an uptrend and suggests the recent move lower has been a correction. Note too that a recent golden cross in the DMA space (50- rising above the 200-dma), is also a bullish signal. Support to watch is 1.0877, Friday’s low. The bull trigger is 1.1139, Dec 28 high.
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EURUSD TECHS: Challenging Support At The 50-Day EMA
- RES 4: 1.1081 76.4% retracement of the Jul 18 - Oct 3 downleg
- RES 3: 1.1065 High Aug 10 and a key resistance
- RES 2: 1.0913/1017 High Dec 1 / High Nov 29 and the bull trigger
- RES 1: 1.0820/27 20-day EMA/High Dec 12
- PRICE: 1.0786 @ 17:12 GMT Dec 12
- SUP 1: 1.0724 Low Dec 8
- SUP 2: 1.0693 Low Nov 14
- SUP 3: 1.0665 61.8% retracement of the Oct 3 - Nov 29 rally
- SUP 4: 1.0582 76.4% retracement of the Oct 3 - Nov 29 rally
EURUSD traded higher into the Tuesday close. More broadly, however, the pair maintains a softer tone and is trading just above its recent lows. Price has recently pierced support at the 50-day EMA - at 1.0774. A clear break of this average would strengthen a bearish theme and open 1.0693, the Nov 14 low. On the upside, a strong reversal higher is required to refocus attention on key resistance and the bull trigger at 1.1017. Initial resistance is at 1.0820, the 20-day EMA.
OPTIONS: Quiet In Rate/Bond Options Ahead Of Fed/ECB/BoE
Tuesday's Europe rates/bond options flow included:
- OEG4 118/116.75ps 1x2 with OEH4 117.5/116ps 1x2 bought the strip for 44 in 1k
- RXG4 131.00/128.50ps, bought for 19.5 in 4k.
- ERZ4 96.75/98.50 combo bought for 8.25 in 2.5k (buys put), (vs 97.34)
- ERU4 97.25/98.25 call spread sold at 19.25 in 10k (vs 97.07)
US TSYS: US TSY 29Y-11M BOND AUCTION: NON-COMP BIDS $67 MLN FROM $21.000 BLN TOTAL
- US TSY 29Y-11M BOND AUCTION: NON-COMP BIDS $67 MLN FROM $21.000 BLN TOTAL
