MNI: FRANCE JAN CONSUMER SENTIMENT 80

• RES 4: 117.93 High Dec 13
• RES 3: 116.43 High Dec 15
• RES 2: 113.34/115.01 High Dec 16 / Low Nov 28
• RES 1: 111.81 High Dec 22
• PRICE: 109.40 @ Close Dec 23
• SUP 1: 109.22 Low Dec 27
• SUP 2: 108.82 Low Oct 21 (cont)
• SUP 3: 108.13 Low Sep 28 (cont) and a key support
• SUP 4: 107.71 3.5 proj of the Dec 7 - 13 price swing

BTP futures remain soft following the latest bearish price action and Tuesday’s move lower highlights a continuation of the trend. The contract has recently cleared support at 115.01, the Nov 28 low and this strengthened bearish conditions. Attention is on 108.13, the Sep 28 low (cont) and a key support. On the upside, initial firm resistance is seen at 113.34, the 20-day EMA.

• RES 4: 0.8980 High Sep 29
• RES 3: 0.8907 50.0% retracement of the Sep 26 - Dec 1 bear leg
• RES 2: 0.8867 High Oct 12
• RES 1: 0.8863 High Dec 27
• PRICE: 0.8849 @ 06:55 GMT Dec 28
• SUP 1: 0.8784/19 Low Dec 23 / 20-day EMA
• SUP 2: 0.8690/8593 50-day EMA / Low Dec 15
• SUP 3: 0.8562/47 200-dma / Low Dec 1 and bear trigger
• SUP 4: 0.8522 Low Aug 30

EURGBP maintains a bullish short-term tone and the recent break of resistance at 0.8829, the Nov 9 high, has reinforced this theme. This paves the way for a move towards 0.8907, a Fibonacci retracement point. Moving average studies have crossed to highlight a bullish backdrop and this reinforces the current trend direction. On the downside, initial firm support is seen at 0.8690, the 50-day EMA. A break would be bearish.

• RES 4: 4132.60 76.4/% of the Nov ‘21 - Oct ‘22 bear leg (cont)
• RES 3: 4049.50 High Feb 23 (cont)
• RES 2: 4043.00 High Dec 13 and the bull trigger
• RES 1: 3870.70/3908.00 20-day EMA / Low Dec 9
• PRICE: 3829.00 @ 06:29 GMT Dec 28
• SUP 1: 3753.00 Low Dec 20 and the bear trigger
• SUP 2: 3646.50 50% retracement of the Sep - Dec bull cycle
• SUP 3: 3580.00 Low Nov 3
• SUP 4: 3552.90 61.8% retracement of the Sep - Dec bull cycle

EUROSTOXX 50 futures remain above their recent lows. Price last week tested resistance at the 20-day EMA which intersects at 3870.70 and marks a key short-term resistance. A clear breach of this hurdle would suggest potential for a stronger recovery. Gains are considered corrective - for now. A reversal lower and a break of 3753.00, the Dec 20 low, would resume the recent downtrend. The bull trigger is at 4043.00, Dec 13 high.