CONSUMER STAPLES: Walgreens: S&P Downgrade

Looking at the Swiss November inflation data in more detail shows that while total services inflation decelerated vs October, this was entirely due to the drop in housing rentals, with the non-rent services contribution increasing for the first time since June (by around 0.06pp). 

• The change in contribution of energy and fuels was approximately as large as the headline uptick.
• The core uptick from 0.8% to 0.9% exaggerates the actual 0.02pp increase to 0.86% Y/Y. For details see the table.
• EURCHF saw a small kneejerk move higher but is now around 10 pips lower since the release, standing around 0.9309 at the intraday low at the time of writing.

• RES 4: 0.6762 High Oct 9   
• RES 3: 0.6733 High Oct 13             
• RES 2: 0.6595/88 50-day EMA / High Nov 7 and a reversal trigger  
• RES 1: 0.6527/50 20-day EMA / High Nov 25
• PRICE: 0.6485 @ 07:57 GMT Dec 3 
• SUP 1: 0.6434 Low Nov 26
• SUP 3: 0.6400 Round number support 
• SUP 3: 0.6350 Low Aug 5 and a key support  
• SUP 4: 0.6339 Low Nov 10 2023

The trend condition in AUDUSD remains bearish. A price sequence of lower lows and lower highs remains intact and note that moving average studies are in a bear-mode position, highlighting a dominant downtrend. Scope is seen for a move towards 0.6350, the Aug 5 low and the next key support. The pair has recovered from its recent lows - a correction. Initial firm resistance to watch is 0.6527, the 20-day EMA.