EUROZONE T-BILL ISSUANCE: W/C January 5

• RES 4: 0.8840 High Nov 20   
• RES 3: 0.8818 High Nov 26 
• RES 2: 0.8802 High Dec 2 and a key near-term resistance 
• RES 1: 0.8766 20-day EMA
• PRICE: 0.8740 @ 06:33 GMT Dec 10
• SUP 1: 0.8721 Low Dec 8
• SUP 2: 0.8706 76.4% retracement of the Oct 8 - Nov 14 bull leg
• SUP 3: 0.8670 Low Oct 21   
• SUP 4: 0.8656 Low Oct 8 and a key support  

A corrective bear cycle in EURGBP remains intact - for now. The cross has breached the 50-day EMA, currently at 0.8752. The break highlights a stronger reversal and a bear threat, plus scope for a deeper retracement, towards 0.8706, a Fibonacci retracement. Initial firm resistance to watch is unchanged at 0.8802, the Dec 2 high. Clearance of this hurdle would be a bullish development and signal a resumption of the uptrend.

• RES 4: 106.975 High Dec 1 
• RES 3: 106.945 High Dec 3 and a key short-term resistance 
• RES 2: 106.885 Low Dec 2   
• RES 1: 106.835 High Dec 8  
• PRICE: 106.710 @ 06:07 GMT Dec 10
• SUP 1: 106.670 Low Dec 9  
• SUP 2: 106.655 2.000 proj of the Nov 26 - Dec 2 - 3 minor price swing
• SUP 3: 106.621 2.236 proj of the Nov 26 - Dec 2 - 3 minor price swing
• SUP 4: 106.600 2.382 proj of the Nov 26 - Dec 2 - 3 minor price swing 

A sharp sell-off in Schatz futures last week and a bearish start to this week’s session, confirms a continuation of a bear cycle that started mid-October.  Note that on the continuation chart, MA studies are in a bear-mode position, highlighting a dominant downtrend. Sights are on 106.655 next, a Fibonacci projection. Key short-term resistance has been defined at 106.945, the Dec 3 high. A corrective bounce would allow an oversold trend condition to unwind.