CHINA PRESS: Yuan Seen To Remain Basically Stable - Economists

• RES 4: 107.402 1.50 proj of the Oct 31 - Nov 14 - 18 price swing   
• RES 3: 107.335 High Oct 1 and a key resistance 
• RES 2: 107.225 High Oct 3  
• RES 1: 107.170 High Dec 2 / 3     
• PRICE: 107.040 @ 06:10 GMT Dec 4   
• SUP 1: 106.908/880 20-day EMA / Low Nov 28           
• SUP 2: 106.740 Low Nov 22  
• SUP 3: 106.645 Low Nov 18
• SUP 4: 106.485 Low Nov 5 

Recent gains in Schatz futures highlight a continuation of the bull cycle that started Oct 31. 107.108, the 76.4% retracement of the bear leg between Oct 1 - 31, has been breached. This  strengthens a bullish theme and opens 107.335, the Oct 1 high. Key short-term support is at 106.880, the Nov 28 low. A break of this level would highlight a possible reversal. Support at the 20-day EMA is at 106.908.

• RES 4: 1.3048 High Nov 6 and a key resistance
• RES 3: 1.2961 50.0% retracement of the Sep 26 - Nov 22 bear leg  
• RES 2: 1.2849 50-day EMA 
• RES 1: 1.2718/50 20-day EMA / High Nov 29
• PRICE: 1.2688 @ 06:30 GMT Dec 4 
• SUP 1: 1.2567/2487 Low Nov 27 / 22 and the bear trigger   
• SUP 2: 1.2446 Low May 9
• SUP 3. 1.2367 76.4% retracement of the Oct 4 ‘23 - Sep 26 uptrend 
• SUP 4: 1.2300 Low Apr 22 and a key support     

Recent gains in GBPUSD are considered corrective and the move higher has allowed an oversold trend condition to unwind. Initial firm resistance is 1.2718, the 20-day EMA and a key short-term hurdle for bulls. It has been pierced, a clear break of the average would signal scope for a stronger recovery. The medium-term trend direction is down, with moving average studies in a bear-mode set-up. The bear trigger is 1.2487, the Nov 22 low.