BTP TECHS: (U5) Trading Inside A Range

• RES 4: 93.00 Round number resistance     
• RES 3: 92.74 61.8% retracement of the Jul 1 - 18 bear leg     
• RES 2: 92.42 50.0% retracement of the Jul 1 - 18 bear leg   
• RES 1: 91.83/92.15 20-day EMA / High Jul 22
• PRICE: 91.44 @ Close Jul 27 
• SUP 1: 91.18/91.08 Low Jul 24 / 18 and the bear trigger   
• SUP 2: 90.97 76.4% retracement of the May 22 - Jul 1 bull leg
• SUP 3: 90.59 Low May 29   
• SUP 4: 90.46 Low May 23        

Gilt futures continue to trade below the Jul 22 high and the contract remains above its recent lows. A rally early last week resulted in a break of the 20-day EMA. A resumption of gains would signal scope for a climb towards 92.42 next, a Fibonacci retracement. On the downside, key support and the bear trigger has been defined at 91.08, the Jul 18 low. Clearance of this level would resume the bear cycle that started Jul 1.

• MNI: SWEDEN FLASH Q2 GDP +0.9% Y/Y

• RES 4: 177.08 2.000 proj of the Feb 28 - Mar 18 - Apr 7 price swing 
• RES 3: 175.43 High Jul 11 ‘24 and a key medium-term resistance
• RES 2: 174.86 1.764 proj of the Feb 28 - Mar 18 - Apr 7 price swing
• RES 1: 173.97 High Jul 27 and the bull trigger 
• PRICE: 171.66 @ 06:55 BST Jul 29
• SUP 1: 171.53 20-day EMA
• SUP 2: 170.81 Low Jul 11
• SUP 3: 169.77 Low Jul 7  
• SUP 4: 168.89 50-day EMA   

The bullish trend condition in EURJPY remains intact, and for now a pullback is considered corrective. Initial support to watch lies at 171.53, the 20-day EMA. A clear breach of this average would signal scope for a deeper correction and highlight potential for a move towards the 50-day EMA, at 168.89. Moving average studies remain in a bull-mode position highlighting an uptrend. A break of Monday's 173.97 high would resume the bull cycle.