FED: US TSY 7Y NOTE AUCTION: HIGH YLD 3.925%; ALLOTMENT 19.00%

• US TSY 7Y NOTE AUCTION: HIGH YLD 4.092%; ALLOTMENT 75.53%
• US TSY 7Y NOTE AUCTION: DEALERS TAKE 4.06% OF COMPETITIVES
• US TSY 7Y NOTE AUCTION: DIRECTS TAKE 33.68% OF COMPETITIVES
• US TSY 7Y NOTE AUCTION: INDIRECTS TAKE 62.26% OF COMPETITIVES
• US TSY 7Y AUCTION: BID/CVR 2.79

• RES 4: 1.1923 2.000 proj of the Feb 28 - Mar 18 - 27 price swing
• RES 3: 1.1851 High Sep 10 2021
• RES 2: 1.1749/1829 High Jul 24 / 01 and the bull trigger 
• RES 1: 1.1675 20-day EMA 
• PRICE: 1.1543 @ 17:58 BST Jul 29
• SUP 1: 1.1527 Intraday low
• SUP 2: 1.1500 Round number support
• SUP 3: 1.1431 23.6% retracement of the Feb 3 - Jul 1 bull cycle 
• SUP 4: 1.1373 Low Jun 10   

EURUSD traded sharply lower Monday and the close at the day low strengthens a short-term bearish threat. Today’s extension has resulted in a move through key support at the 50-day EMA, at 1.1560. A clear break of this average would signal a stronger reversal and the start of a correction. This would open 1.1431, a Fibonacci retracement. Note that M/T trend indicators continue to highlight an uptrend. The bull trigger is 1.1829, the Jul 1 high. 

Tuesday's Europe rates/bond options flow included:

• RXU5 134c, bought for 2 in 4.5k
• ERZ5 98.37/98.50 call spread, bought for 1.0 in 30k. Traded vs 98.105 and 98.110
• ERH6 97.875/98.375/98.875 call fly sold out at 21 in 25.5k
• SFIU5 96.15/96.25/96.30c fly, bought for 1 in 8.88k
• SFIX5 96.60/96.70cs, bought for 0.75 in 5k
• SFIZ5 96.65/96.75cs, was bought earlier for 0.75 in 10k
• SFIH6 96.75/96.90cs, bought for 2.25 in 8.88k
• SFIM6 97.40/97.50cs, bought for 0.75 in 10k