EM ASIA CREDIT: Vedanta Resources: Viceroy calls debt unsustainable

• The Dollar starts the session in the Red, a continuation from the Overnight session, while the small push lower in US Yields could a be a driver, most Yields are still trading closer to the June high, printed on Friday post NFP.
• Small downside continuation are going through in the Dollar as Europe joins the session.
• A new intraday low for the Greenback against the EUR, GBP, JPY, CZK, THB, SGD, and the ZAR.
• The Kiwi is still the best early performer, up 0.45%, and initial resistance comes at 0.6055 in NZDUSD.
• The Yen is quickly catching up, and is the 2nd best performer now within G10s, with the USDJPY looking to drift back towards 144.00.
• Overall the Yen is still down over 1% for the past 5 days, and small support in USDJPY is seen further out, below the figure, down to 143.44.
• The Pound and the EUR are now also testing intraday lows versus the Yen.

• RES 4: 6124.00 High Feb 24     
• RES 3: 6080.75 High Feb 26  
• RES 2: 6057.00 High Mar 3
• RES 1: 6025.00 High June 6 
• PRICE: 5996.50 @ 07:22 BST Jun 9  
• SUP 1: 5883.97/5789.75 20- and 50-day EMA values
• SUP 2: 5756.50 Low May 23    
• SUP 3: 5596.00 Low May 7
• SUP 4: 5455.50 Low Apr 30

The trend condition in S&P E-Minis is unchanged, it remains bullish and the contract traded to a fresh cycle high last week. The recent break of 5993.50, the May 20 high and a bull trigger, highlights a resumption of the uptrend and maintains a price sequence of higher highs and higher lows. A continuation would open 6057.00 next, the Mar 3 high. Key support lies at 5789.75, the 50-day EMA.

• RES 4: $72.12 - High Feb 20  
• RES 3: $71.10 - High Apr 2 and key resistance
• RES 2: $65.82 - High Apr 4 2 and key resistance
• RES 1: $64.86 - High May 21
• PRICE: $64.44 @ 07:19 BST Jun 9 
• SUP 1: $59.74/54.33 - Low May 30 / Low April 9 and the bear trigger
• SUP 2: $53.30 - 2.236 proj of the Feb 20 - Mar 5 - Apr 2 price swing
• SUP 3: $52.14 - 2.382 proj of the Jan 15 - Feb 4 - 11 price swing
• SUP 4: $50.00 - Psychological round number  

WTI futures traded higher last week, resulting in a clear break of resistance around the 50-day EMA. The climb signals scope for an extension towards $65.82, the Apr 4 high. It is still possible that the recovery since early May is a correction. Moving average studies are in a bear-mode position, highlighting a dominant medium-term downtrend. Support to watch lies at $59.74, the May 30 low. A break would highlight a potential bearish reversal.