US 10YR FUTURE TECHS: (Z5) Testing Recovery High
- RES 4: 114-02 High Oct 17 and the bull trigger
- RES 3: 113-29 High Oct 22
- RES 2: 113-18+ High Oct 28
- RES 1: 113-02 High Nov 5 and a key near-term resistance
- PRICE: 113-01+ @ 16:57 GMT Nov 7
- SUP 1: 112-09+ Low Nov 5
- SUP 2: 112-08+ 38.2% retracement of May - Oct Upleg
- SUP 3: 112-07/06 100-dma / Low Sep 25 and a reversal trigger
- SUP 4: 112-00 Trendline support drawn from the May 22 low
Treasuries again traded stronger through the first half of the session, keeping the near-term recovery high into 113-02 under pressure. Clearance of this level would highlight a potential bullish reversal. Despite intraday recoveries, a short-term bearish threat in Treasuries remains intact. Sights are on a reversal trigger at 112-06, the Sep 25 low, and the 100-DMA, at 112-07. Clearance of these price points would expose a trendline support at 112-00 - the trendline is drawn from the May 22 low.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
FED: US TSY 9Y-10M NOTE AUCTION: HIGH YLD 4.117%; ALLOTMENT 78.38%
- US TSY 9Y-10M NOTE AUCTION: HIGH YLD 4.117%; ALLOTMENT 78.38%
- US TSY 9Y-10M NOTE AUCTION: DEALERS TAKE 9.09% OF COMPETITIVES
- US TSY 9Y-10M NOTE AUCTION: DIRECTS TAKE 24.10% OF COMPETITIVES
- US TSY 9Y-10M NOTE AUCTION: INDIRECTS TAKE 66.80% OF COMPETITIVES
- US TSY 9Y-10M AUCTION: BID/CVR 2.48
EURUSD TECHS: Corrective Cycle Extends
- RES 4: 1.1919 High Sep 17 and a bull trigger
- RES 3: 1.1820 High Sep 23
- RES 2: 1.1779 High Oct 1 and a key short-term resistance
- RES 1: 1.1723 20-day EMA
- PRICE: 1.1615 @ 16:18 BST Oct 8
- SUP 1: 1.1606 Low Oct 8
- SUP 2: 1.1574 Low Aug 27
- SUP 3: 1.1516 76.4% retracement of the Aug 1 - Sep 17 bull leg
- SUP 4: 1.1392 Low Aug 1 and bear trigger.
EURUSD is trading lower as the current corrective cycle extends. This week’s move down has resulted in a breach of the 50-day EMA, and support at 1.1646, the Sep 25 low. The move paves the way for an extension towards 1.1574, the Aug 27 low. Note that moving average studies are in a bull-mode position highlighting a dominant medium-term uptrend. Initial firm resistance is 1.1779, the Oct 1 high. A break of this level would signal a bull reversal.
OPTIONS: Sizeable Upside Continues Alongside Vol Selling In Euribor Wednesday
Wednesday's Europe rates/bond options flow included:
- ERZ5 98.00^ sold at 7.5 in 1.5k (had been sold at 7 / 7.25 Tuesday)
- ERF6 98.1875/98.3125cs vs ERM6 98.37/98.50cs, bought the June for half in 5k
- ERH6 98.25/98.37cs, bought for 1 in 20k
- ERH6 98.06/98.18cs, bought for 3 in 5k
- ERH6 98.00/98.06/98.12/98.18c condor, bought for 0.25 in 4k
- ERM6 98.31/98.43cs, bought for 1.75 in 10k
- ERM6 98.75c, bought for 1 in 23.3k
- ERM6 98.50/98.625/98.75/98.875c condor, bought for half in 7.5k (around 50k done this week)
- ERU6 97.93/97.81ps v ERM6 97.87p, bought the ps for half in 3k
- 0RM6 98.25 calls paper paid 5.25-5.5 on 9K (ref. 97.91)
- SFIM6 96.50/96.75cs, bought for 5.25 in 6k
