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TECHS: Price Signal Summary - USD Enters  Corrective Phase

MARKET INSIGHT
  • The USD is weaker and appears to have entered a much needed corrective phase. If correct, this is allowing a recent oversold USD condition to unwind.
  • Support levels to watch in EURUSD are:
    • 1.2130 Low Dec 21 and 1.2083, the 50-day EMA. A break of both would signal scope for a deeper pullback.
  • USDJPY attention is on key resistance at 104.38, the bear channel top drawn off the Mar 24 high. A break would highlight a stronger reversal.
  • On the commodity front, Gold appears vulnerable following last week's sell-off. Watch support at $1810.7 - 76.4% retracement of the Nov 30 - Jan 6 rally. Oil contracts remain bullish but are off overnight highs. Support levels to watch are:
    • Brent (H1) - $53.94, the Jan 7 low and 52.46, Dec 18 high.
    • WTI (G1) - $50.39, Jan 7 low and $49.43, Dec 18 high.
  • In the equity space, the trend in the E-Mini S&P contract remains bullish. Focus is on 3824.50, Friday's high. Further out, scope exists for a climb towards 3.900.00.
  • A bearish risk still prevails in the FI space.
    • Treasuries (H1) targets 136-04+ 1.00 proj of the Nov 5 - 11 sell-off from Nov 30 high.
    • Bunds (H1) focus is on support at 177.01, Dec 23 low.
    • Gilts (H1) focus is on 134.01, Dec 24 low and a key support.

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