EUROZONE T-BILL ISSUANCE: W/C 7 July

• RES 4: 5600.00 Round number resistance    
• RES 3: 5565.23 1.618 proj of the Apr 7 - 9 - 10 price swing
• RES 2: 5516.00 High Mar 3 and the key bull trigger
• RES 1: 5475.00 High May 20  
• PRICE: 5419.00 @ 06:22 BST Jun 9 
• SUP 1: 5362.38 20-day EMA
• SUP 2: 5280.33 50-day EMA and a key support 
• SUP 3: 5142.00 Low May 2         
• SUP 4: 5055.00 Low Apr 30  

The trend cycle in Eurostoxx 50 futures remains bullish and the contract is trading closer to its recent highs. Moving average studies are in a bull-mode position, highlighting a clear dominant uptrend. Sights are on 5516.00, the Mar 3 high and the key bull trigger. Clearance of this level would strengthen a bull theme. Key support to watch lies at 5280.33, the 50-day EMA. A clear break of this average would signal a possible reversal.

The BBDXY USD index is down 0.2% today at 1209.86 off the intraday low of 1209.18 with the fall broad based across G10 currencies. It reached 1211.95 early in the session but has been pressured by lower US bond yields with the 2-year down around 3bp from Friday. Kiwi and Aussie have benefited the most as risk appetite also improved and drove equity markets higher across the region.

• NZDUSD is up 0.4% today to 0.6038, close to the intraday high of 0.6042. Earlier Q1 manufacturing volumes were strong up 2.4% q/q, while RBNZ Chief Economist Conway expects core inflation to fall to the band mid-point but noted that the labour market remains lacklustre.
• AUDUSD has trended higher and is currently up 0.4% to 0.6518. Initial resistance is at 0.6538, 5 June high. AUDNZD is slightly higher at 1.0796 following a peak of 1.0803 but has not been able to hold breaks above 1.08.
• USDJPY is down 0.3% to 144.47, close to the intraday low of 144.35. Japanese data today on balance were slightly stronger with Q1 GDP revised up to flat on the quarter from -0.2% q/q, the Eco Watchers survey rose in May and the April trade deficit was slightly lower than expected.
• EURUSD is 0.2% higher at 1.1418 as is GBPUSD at 1.3554 leaving EURGBP flat at 0.8424.
• USDCAD is up 0.1% to 1.3684 after outperforming the G10 on Friday. 

• RES 4: 107.830 High Apr 22  
• RES 3: 107.690 High Apr 30
• RES 2: 107.610 High May 23 and a key near-term resistance
• RES 1: 107.320/475 Low May 29 / High May 27 
• PRICE: 107.235 @ 06:07 BST Jun 9
• SUP 1: 107.195 Low Jun 6    
• SUP 2: 107.125 Low May 12 and a key support
• SUP 3: 107.000 Round number support 
• SUP 4: 106.890 2.000 proj of the May 23 - 29 - 30 price swing

Schatz futures remain in a bull cycle, however, the sharp pullback last Thursday does undermine the recent bull theme. A resumption of gains would highlight the fact that the retracement has been a correction. Initial resistance to watch is 107.475, the May 27 high. A break would be a bullish development. For bears, an extension lower would instead expose the key support at 107.125, the May 12 low.