EM ASIA CREDIT: TSMC: June sales up

Broader risk-off price action developing over the last 30 minutes or so.

• The move seemed to start in {CH} & {HK} equities.
• We haven't seen any major headlines cross and are trying to track down a driver.
• The U.S. previously provided some generally positive soundbites surrounding Monday's trade talks with China, while there has been little in the way of official commentary out of China ahead of the second day of talks in London.
• E-minis are now lower vs. settlement, while Chinese & HK equities are lower across the board.

• RES 4: 107.830 High Apr 22  
• RES 3: 107.690 High Apr 30
• RES 2: 107.610 High May 23 and a key near-term resistance
• RES 1: 107.320/475 Low May 29 / High May 27 
• PRICE: 107.235 @ 06:11 BST Jun 10
• SUP 1: 107.195 Low Jun 6    
• SUP 2: 107.125 Low May 12 and a key support
• SUP 3: 107.000 Round number support 
• SUP 4: 106.890 2.000 proj of the May 23 - 29 - 30 price swing

Schatz futures remain in a bull cycle, however, the sharp sell-off on Jun 5  does undermine the recent bull theme. A resumption of gains would highlight the fact that the retracement has been a correction. Initial resistance to watch is 107.475, the May 27 high. A break would be a bullish development. For bears, an extension lower would instead expose the key support at 107.125, the May 12 low.

• RES 4: 1.3800 Round number resistance 
• RES 3: 1.3757 1.618 proj of the Feb 28 - Apr 3 - 7 price swing
• RES 2: 1.3681 1.500 proj of the Feb 28 - Apr 3 - 7 price swing
• RES 1: 1.3616 High Jun 5    
• PRICE: 1.3542 @ 06:24 BST Jun 10
• SUP 1: 1.3462 20-day EMA
• SUP 2: 1.3335/3299 Low May 20 / 50-day EMA
• SUP 3: 1.3140 Low May 12 and key support
• SUP 4: 1.3041 Low Apr 14

Trend signals in GBPUSD remain bullish with price trading just ahead of its recent highs. Last week’s  fresh cycle high, confirmed a resumption of the uptrend and an extension of the price sequence of higher highs and higher lows. This opens 1.3681 next, a Fibonacci projection. Initial support to watch lies at 1.3462, the 20-day EMA. A clear break of this average would suggest potential for a deeper correction and expose the 50-day EMA, at 1.3299.