ENERGY: *US DISCUSSED EASING IRAN SANCTIONS: CNN

May's $69B 2Y Note traded through by 1bp at Tuesday's auction (3.955% high yield versus a 3.965% when-issued yield)..

• That's the highest trade-through for 2s since February and comes with mixed peripheral statistics: dealers took down just 10.5% of competitives (11.3% 5-auction average), with indirects of 63.3% slightly on the low side (5-auc average 72.9%) and bid-to-cover of 2.57x (5-auc average 2.62x), though each statistic was improved from April's weak sale.(0.5bp tail, 13.7% primary dealers/56.2% indirects, 2.52x bid-to-cover).
• Market reaction to the auction result was modestly positive, with the current 2Y Tsy dipping about 0.5bp to session low 3.968% (today's trade has largely been within Friday's ranges).

• US TSY 2Y NOTE AUCTION: HIGH YLD 3.955%; ALLOTMENT 90.40%
• US TSY 2Y NOTE AUCTION: DEALERS TAKE 10.48% OF COMPETITIVES
• US TSY 2Y NOTE AUCTION: DIRECTS TAKE 26.18% OF COMPETITIVES
• US TSY 2Y NOTE AUCTION: INDIRECTS TAKE 63.34% OF COMPETITIVES
• US TSY 2Y AUCTION: BID/CVR 2.57

• RES 4: 1.1625 1.500 proj of the Feb 28 - Mar 18 - 27 price swing
• RES 3: 1.1608 High Nov 9 2021
• RES 2: 1.1573 High Apr 21 and the bull trigger
• RES 1: 1.1453 76.4% retracement of the Apr 21 - May 12 bear leg    
• PRICE: 1.1330 @ 16:54 BST May 27
• SUP 1: 1.1271 20-day EMA 
• SUP 2: 1.1143/1.1065 50-day EMA and a pivot level / Low May 12
• SUP 3: 1.1026 38.2% retracement of the Feb 3 - Apr 21 bull cycle   
• SUP 4: 1.0943 Low Apr 10

EURUSD is trading just ahead of its latest highs. Trend conditions are bullish and moving average studies remain in a bull mode position, highlighting a dominant uptrend. The Apr 21 - May 12 bear leg appears to have been a correction. Sights are on 1.1453, a Fibonacci retracement. Key support lies at 1.1143, the 50-day EMA. A clear break of the average would highlight a stronger reversal and signal scope for a deeper retracement.