EUROSTOXX50 TECHS: (Z5) Bullish Price Sequence

Sovereign rating reviews of note from after hours on Friday include:

• Fitch upgraded Italy to BBB+; Outlook Stable
• Moody's affirmed Poland at A2; Outlook changed to Negative from Stable
• S&P affirmed Ireland at AA; Outlook Positive
• Morningstar DBRS upgraded Cyprus to A, Stable Trend
• Morningstar DBRS downgraded France to AA, Trend Changed to Stable
• Morningstar DBRS confirmed Norway at AAA, Stable Trend
• Morningstar DBRS confirmed Finland at AA (high), Stable Trend
• Morningstar DBRS confirmed the United States of America at AAA, Stable Trend
• Scope Ratings affirmed the Czech Republic at AA-; Outlook Stable

• RES 4: 92.30 High Aug 7
• RES 3: 92.06 High Aug 14      
• RES 2: 92.00 Round number resistance
• RES 1: 91.14/82 20-day EMA / High Sep 11
• PRICE: 90.71 @ Close Sep 19
• SUP 1: 90.65 Low Sep 2
• SUP 2: 90.31/89.36 Low Sep 4 / 3
• SUP 3: 89.22 1.618 proj of the Aug 21 - 27 - 28 price swing 
• SUP 4: 89.00 Round number support   

Gilt futures  gapped lower on Friday extending the pullback from recent highs. Despite the sell-off, a bull cycle remains intact and a recent rally highlights a stronger corrective cycle. Note that the move higher has allowed an oversold trend condition to unwind. Price has breached initial firm resistance at 90.84, the Aug 28 and 29 high. A resumption of gains would  open 92.06, the Aug 14 high. Initial support lies at 90.65, the Sep 5 low.

• RES 4: 151.62 61.8% retracement of the Jan 10 - Apr 22 bear leg
• RES 3: 150.92 High Aug 1 and a key resistance 
• RES 2: 149.64 76.4% retracement of the Aug 1 - Sep 17 bear leg 
• RES 1: 148.38/149.14 Intraday high / High Sep 3  
• PRICE: 148.27 @ 06:58 BST Sep 22
• SUP 1: 146.77/145.49 Low Sep 18 / 17 and a pivot support 
• SUP 2: 145.40 50% retracement of the Apr - Aug upleg
• SUP 3: 144.10 61.8% retracement of the Apr - Aug upleg
• SUP 4: 143.45 Low Jul 3 

USDJPY recovered sharply from last Wednesday’s low and the pair is holding onto its latest gains. A bullish candle pattern on Sep 17 - a hammer formation - provided an early reversal signal. Last Wednesday, the pair breached a number of important short-term support levels, however, this has not confirmed a bearish threat. A continuation higher would open 149.14, the Sep 3 high. Pivot support is 145.49, the Sep 17 low.