EUROPEAN INFLATION: France downside surprise look driven by services

• RES 4: 0.8545 High Aug 21  
• RES 3: 0.8530 76.4% retracement of the Aug 8 - Dec 19 downleg 
• RES 2: 0.8494 High Aug 26 ‘24
• RES 1: 0.8421/8474 High Jan 27 / 20 and the bull trigger 
• PRICE: 0.8372 @ 08:11GMT Jan 29
• SUP 1: 0.8364 Intraday low 
• SUP 2: 0.8357 50-day EMA
• SUP 3: 0.8284 Low Jan 8
• SUP 4: 0.8263 Low Dec 31

EURGBP continues to trade lower this week, extending the correction that started on Jan 20. A bull cycle is intact and moving average studies are in a bull-mode position, highlighting a dominant short-term uptrend. The 20-day EMA at 0.8387 has been breached and this exposes 0.8357, the 50-day EMA. A clear breach of this EMA would highlight a stronger reversal. The bull trigger is 0.8474, the Jan 20 high. A break of it would resume the uptrend.

Big move in the Tech index, way past pre DeepSeek's collapse.

(chart source: MNI/Bloomberg).

• RES 4: $34.903 - High Oct 23 and the bull trigger  
• RES 3: $33.125 - High Nov 1 
• RES 2: $32.338 - High Dec 12 and a key resistance  
• RES 1: $31.022 - High Jan 24                              
• PRICE: $30.417 @ 08:07 GMT Jan 29  
• SUP 1: $29.509/28.748 - Low Jan 13 / Low Dec 19 and bear trigger        
• SUP 2: $28.446 - 76.4% retracement of the Aug 8 - Oct 23 bull cycle 
• SUP 3: $27.686 - Low Sep 6 
• SUP 4: $26.451 - Low Aug 8  

Silver is unchanged. A bear cycle that started on Oct 23 last year remains in play and recent gains are considered corrective. However, the latest move higher does suggest scope for a continuation near-term. An extension would expose key resistance at $32.338, the Dec 12 high. Clearance of this level would highlight a reversal. On the downside, support to watch is $29.509, the Jan 13 low, and $29.748, the Dec 19 low and the bear trigger.