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Rare SOFR Futures Activity In Early Asia Trade


(U1) Needle Points North

Tech Focus: EURUSD Approaches 1.2000

  • In equities, E-mini S&P futures continue to extend this week's recovery. Attention is on this year's high of 3862.25 from Jan 26. A break would confirm a resumption of the uptrend.
  • In the FX space, USDJPY is holding onto recent gains. The focus is on 105.68 next, Nov 11 high.
  • EURUSD is softer following yesterday's break of support at 1.2054, Jan 18 low. The break confirms a resumption of the corrective downtrend and opens the 1.2000 handle. A break of 1.2000 would expose 1.1976, 50.0% of the Nov 4 - Jan 6 rally.
  • EURGBP is pressuring 0.8800. Scope is for weakness towards 0.8759, the May 12, 2020 low.
  • On the commodity front, Gold directional triggers are the resistance at $1875.2, Jan 21 high and the support at $1831.5, Jan 27 low. The yellow metal has probed $1831.5, a clear break would open $1804.7, Jan 18 low and key support. Silver remains vulnerable following yesterday's sharp sell-off. Further weakness would open $25.483, 76.4% retracement of the Jan 18 - Feb 1 rally. Oil contracts are firm. Brent (J1) has this week cleared resistance at $57.31, Jan 13 high to confirm a resumption of the broader uptrend. This opens $58.59, 76.4% of the Jan - Apr 2020 sell-off (cont). WTI (H1) has also resumed its underlying uptrend and has probed $55.00. Attention is on $56.52 next, 1.236 projection of Apr - Aug rally from the Nov 2 low
  • In the FI space, Bunds (H1) Key support and the bear trigger lies at 176.34, Jan 12 low. Gilts (H1) have cleared support at 133.55, Jan 12 low. This opens 133.22 next, 1.382 projection of Dec 11 - 24 sell-off from Jan 4. BTPs (H1) gapped higher at the open. Importantly, the contract has cleared trendline resistance drawn off the Jan 8 high. The break opens 152.14, Jan 20 high.
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