RENEWABLES: UK Morning Wind Forecast

• The bid in Estoxx futures has lacked traction, after Cash Equities gapped lower on the Open, caught up with some of the price action seen in Futures.
• Estoxx futures continues to trade within that 135 points range seen last Week, less volatile to some of the US Equity sessions.
• Last Week's range of 4786.00/4921.00 (low/high) will be seen as the first support/resistance.

• RES 4: 0.6550 61.8% retracement of the Sep 30 ‘24 - Apr 9 bear leg  
• RES 3: 0.6528 High Nov 29 ‘24
• RES 2: 0.6471 High Dec 9 ‘24
• RES 1: 0.6439 Intraday high 
• PRICE: 0.6424 @ 08:11 BST Apr 22 
• SUP 1: 0.6370/6291 Low Apr 21 / 20-day EMA  
• SUP 2: 0.6181 Low Apr 11  
• SUP 3: 0.6116 Low Apr 10 
• SUP 4: 0.5915 Low Apr 9 and key support  

AUDUSD traded higher Monday and the pair is holding on to its latest gains . A key resistance at 0.6409, the Dec 9 ‘24 high, has been cleared. This reinforces bullish conditions and signals scope for a continuation higher near-term. Sights are on  0.6471 next, the Dec 9 2024 high. Initial key support to monitor is 0.6291, the 20-day EMA. A clear break of this EMA would be a concern for bulls.

Citi remain “positioned for the market to keep adding BoE cuts as tariffs announcements turn to economic reality via SFI M5/M6 flatteners”.

• They believe that “worries about economic activity should allow the BoE to look through higher near-term inflation and induce a faster, catch-up easing cycle which should support a lower yield environment across the term structure over the medium-term”.