GILT AUCTION RESULTS: 4.375% Jan-40 Gilt

Of note:

EURUSD 4.21bn at 1.0400/1.0500.

AUDUSD; 1.64bn at 0.6300.

USDJPY 1.36bn at155.00 (wed).

EURUSD 5.47bn at 1.0400/1.0500 (fri).

USDJPY 1.02bn at 155.00 (fri).

EURUSD 1.7bn at 1.0400 (mon).

USDCAD 1.44bn at 1.4400 (mon).

• EURUSD:; 1.0400 (1.01bn), 1.0420 (200mln), 1.0430 (374mln), 1.0450 (205mln), 1.0460 (697mln), 1.0480 (320mln), 1.0500 (1.37bn).
• AUDUSD: 0.6200 (720mln), 0.9280 (491mln), 0.6300 (1.64bn).

Monday’s move lower in WTI futures marks an extension of the current corrective cycle. The 20-day EMA has been breached and attention turns to support around the 50-day EMA, at $72.16. A clear break of the 50-day average would suggest scope for a deeper retracement. On the upside, a reversal higher would focus attention on $79.48, the Apr 12 ‘24 high and a key resistance. Despite yesterday’s pullback, Gold is trading closer to its recent highs. A bull cycle is in play and the breach of resistance at 2726.2, the Dec 12 high, reinforces current conditions. Sights are on $2790.1, the Oct 31 all-time high. A break of this hurdle would confirm a resumption of the primary uptrend. On the downside, the first key support to watch is $2671.6, the 50-day EMA. A reversal lower and a breach of this average would reinstate a bearish threat.

• WTI Crude up $0.34 or +0.46% at $73.5
• Natural Gas down $0.04 or -1.08% at $3.65
• Gold spot up $3 or +0.11% at $2743.4
• Copper up $2.1 or +0.5% at $425.1
• Silver down $0.12 or -0.4% at $30.09
• Platinum down $2.13 or -0.22% at $947.69

A bull cycle in the Eurostoxx 50 futures contract remains intact and the move lower from last Friday’s high, is considered corrective. A deeper retracement would allow an overbought trend condition to unwind. Moving average studies remain in a bull-mode set-up highlighting a dominant uptrend. The first important support to watch is 5097.39, the 20-day EMA. A resumption of the uptrend would open 5298.50, a Fibonacci projection. The S&P E-Minis contract initially traded lower Monday extending the pullback from last Friday’s high. Key short-term support to watch lies at 5961.75, the Jan 16 low (pierced). For now, the move down appears corrective, however, a clear breach of 5961.75 would strengthen a bearish threat and signal scope for a deeper retracement, towards 5943.94, a Fibonacci retracement. Key resistance is 6178.75, the Dec 6 high.

• Japan's NIKKEI closed lower by 548.93 pts or -1.39% at 39016.87 and the TOPIX ended 1.17 pts lower or -0.04% at 2756.9.
• Across Europe, Germany's DAX trades higher by 85.17 pts or +0.4% at 21367.16, FTSE 100 higher by 46.86 pts or +0.55% at 8549.93, CAC 40 up 19.85 pts or +0.25% at 7926.43 and Euro Stoxx 50 up 14.69 pts or +0.28% at 5203.14.
• Dow Jones mini up 14 pts or +0.03% at 44916, S&P 500 mini up 16.5 pts or +0.27% at 6062.25, NASDAQ mini up 107 pts or +0.5% at 21361.5.