POWER: German Spot Power to Fall Sharply

• EUR Benchmark 10Y Fixed (June 22, 2035) MS+68 Area
• Coupon: Annual, act/act, short first
• Issuer: Kingdom of Belgium Government Bond (BGB)
• Format: Reg S CAT1, dematerialized, senior unsecured, 144a eligible
• Settlement: Jan. 14, 2025
• Denoms: 0.01 x 0.01
• ISIN: BE0000363722
• Bookrunners: BNPP (B&D), CA-CIB, HSBC, JPM, MS

(As per Bloomberg).

• RES 4: 1.4674 2.0% 10-dma envelope
• RES 3: 1.4539 3.382 proj of the Oct 17 - Nov 1 - 6 price swing
• RES 2: 1.4508 3.236 proj of the Oct 17 - Nov 1 - 6 price swing
• RES 1: 1.4467 High Dec 19 
• PRICE: 1.4305 @ 08:03 GMT Jan 7 
• SUP 1: 1.4322/4280 20-day EMA / Low Jan 6  
• SUP 2: 1.4232 Low Dec 17 
• SUP 3: 1.4155 50-day EMA
• SUP 4: 1.4011 Low Dec 5

USDCAD traded lower Monday. The trend set-up remains bullish and a move down appears corrective - for now. The latest pause in the uptrend appears to be a flag formation - a bullish continuation signal. Note too that MA studies are in a bull-mode position, highlighting a dominant uptrend. Sights are on 1.4508 next, a Fibonacci projection level. 1.4322, the 20-day EMA, has been pierced. A clear break of the EMA would open 1.4155, the 50-day EMA.

• RES 4: 0.6471 High Dec 9
• RES 3: 0.6400 50-day EMA               
• RES 2: 0.6341 High Dec 18   
• RES 1: 0.6273/0.6302 20-day EMA / High Jan 6
• PRICE: 0.6275 @ 07:59 GMT Jan 7 
• SUP 1: 0.6179 Low Dec 31 
• SUP 3: 0.6158 1.236 proj of the Sep 30 - Nov 6 - 7 price swing
• SUP 3: 0.6100 Round number support 
• SUP 4: 0.6045 1.500 proj of the Sep 30 - Nov 6 - 7 price swing

Despite Monday’s gains, a bearish trend condition in AUDUSD remains intact. Recent weakness maintains the price sequence of lower lows and lower highs. Note that moving average studies are in a bear-mode position too, highlighting a dominant downtrend. Scope is seen for an extension towards 0.6158 next, a Fibonacci projection. Initial firm resistance to monitor is 0.6276, the 20-day EMA. It has been pierced but for now, remains intact.