ENERGY: US Oil and Gas Rigs Down 1 on Week at 543: Baker Hughes

Treasury futures show little reaction (TYH6 -3 at 112-13.5) after $13B 20Y Bond auction re-open (912810UQ9) trades slightly through - drawing a high yield of 4.798% vs 4.800% WI at the cutoff; 2.67x bid-to-cover vs. 2.41x prior.

• Peripheral stats: indirect take-up rises to 65.19% vs. 59.47% prior; direct bidder take-up retreats to 22.24% from 29.15% prior; primary dealer take-up at 12.57% vs. 11.38% prior.
• The next 20Y re-open is scheduled for January 21, 2026.

• US TSY 19Y-11M BOND AUCTION: HIGH YLD 4.798%; ALLOT 3.16%
• US TSY 19Y-11M BOND AUCTION: DEALERS TAKE 12.57% OF COMPETITIVES
• US TSY 19Y-11M BOND AUCTION: DIRECTS TAKE 22.24% OF COMPETITIVES
• US TSY 19Y-11M BOND AUCTION: INDIRECTS TAKE 65.19% OF COMPETITIVES
• US TSY 19Y-11M BOND AUCTION: BID/COV 2.67

• RES 4: 1.1919 - High Sep 17 and a key M/T resistance   
• RES 3: 1.1848 High Sep 18 
• RES 2: 1.1813 76.4% retracement of the Sep 17 - Nov 5 bear leg
• RES 1: 1.1804 High Dec 16 and a key short-term resistance 
• PRICE: 1.1755 @ 16:22 GMT Dec 17
• SUP 1: 1.1703/1658 Low Dec 17 / 20-day EMA 
• SUP 2: 1.1634 50-day EMA 
• SUP 3: 1.1615 Low Dec 9 
• SUP 4: 1.1591 Low Dec 2

A bull cycle in EURUSD remains intact, however, a short-term reversal signal has appeared on the daily chart. Tuesday’s candle pattern is a shooting star candle formation. If correct, this suggests scope for a pullback near-term. A correction would allow an overbought trend condition to unwind. The first important support lies at 1.1658, the 20-day EMA. Key short-term resistance has been defined at 1.1804, the Dec 16 high.