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EURUSD Continues To Depreciate

MARKET INSIGHT
  • In the equity space, S&P E-Minis are unchanged but remain vulnerable following the recent reversal from 3950.00, the Jun 28 high. A resumption of weakness would open 3735.00, the Jun 23 low. A breach of this level would expose key support at 3639.00, the Jun 17 low and bear trigger. Clearance of 3950.00 is required to strengthen a bullish case. EUROSTOXX 50 futures traded sharply lower Tuesday and cleared support at 3384.00, the Jun 16 low. The break strengthens bearish conditions and confirms a resumption of the broader downtrend. This has opened 3321.30, 50.0% of the major 2020 - 2021 upleg. On the upside, key short-term resistance has been defined at 3584.00, the Jun 27 high.
  • In FX, the EURUSD yesterday breached support at 1.0359, Jun 15 low, and 1.0350, the May 13 low. The break confirms a resumption of the primary downtrend and an extension lower within the bear channel drawn from the Feb 10 high. The focus is on 1.0200 next, the 1.00 projection of the Jun 9 - 15 - 27 price swing. GBPUSD remains vulnerable. The pair traded sharply lower Tuesday, touching the lowest levels in 20 years. The extension lower highlights a continuation of the downtrend and opens 1.1795, 0.764 projection of the Mar 23 - May 13 - 27 price swing. The USDJPY trend condition remains bullish. Last week’s gains confirmed a resumption of the primary uptrend. Initial support is at 134.27, the Jun 23 low. A resumption of gains would open 137.30 next, 1.50 projection of the Feb 24 - Mar 28 - 31 price swing.
  • On the commodity front, Gold traded sharply lower Tuesday and confirmed a breach of key short-term support and the bear trigger at $1787.00, May 16 low. The break confirms a resumption of the broader downtrend and opens $1753.7, the Dec 15 2021 low. In the Oil space, WTI futures faced strong selling pressure Tuesday and this resulted in a break of support at $101.53, the Jun 22 low. This signals potential for weakness towards $95.47, May 11 low.
  • In the FI space, Bund futures remain in a bull cycle. The focus is on 152.28, 76.4% retracement of the May 12 - Jun 16 bear leg. Gilts cleared resistance last week at 114.55, Jun 24 high The break highlights potential for a stronger short-term recovery and this has opened 117.48, 1.236 projection of the Jun 16 - 24 - 29 price swing.
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