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US EURODLR OPTIONS

BLOCK: Red Dec'22 Put Spd

USDJPY TECHS

Bullish Focus

US

Is CPI Inflation About to Decelerate?

EURGBP TECHS

Breaches Support

GBPUSD TECHS

Remains Under Pressure

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  • In the equity space, S&P E-minis have started the week on a softer pulling back from yesterday's high of 4238.25. Two key supports to watch are located at:
    • 4135.30, trendline support drawn off the Mar 4 low
    • 4110.50 Apr 20 low
    • A break of the latter would confirm a top and suggest scope for a deeper pullback. Until then, the trend remains up.
  • In FX, EURUSD maintains a firmer tone following Friday's gains and the break of 1.2150, Apr 29 high. The focus is on 1.2184, Feb 26 high and 1.2243, Feb 25 high. GBPUSD is firm following yesterday's strong rally and attention turns to 1.4237, Feb 24 high and this year's high. USDJPY short-term support has been defined at Friday's low of 108.34. A bullish theme remains intact while this level holds and attention is on 109.70, May 3 high. A break of support would highlight a trendline break, drawn off the Jan 6 low and risk a deeper pullback.
  • On the commodity front, the Gold is holding onto gains and the outlook is bullish. Last week's climb has opened $1851.5, 61.8% retracement of the Jan 6 - Mar 8 sell-off. Oil is off recent highs but the uptrend remains intact. The Brent (N1) focus is on the psychological $70.00 level and $71.75, Jan 8 2020 high (cont). Watch key support at $62.91, May 3 low. WTI bulls are eyeing the key resistance at $67.29, Mar 8 high. Support at $66.10, May 3 low is key.
  • In the FI space, Bunds (M1) are sharply lower today and approaching initial support at 169.47, May 3 low. A break would expose the major support at 169.24, Feb 25 low and the bear trigger. Near-term risk in Gilts is still skewed to the downside. The next support and intraday bear trigger is at 127.32, Apr 1 low.