EUROSTOXX50 TECHS: (H5) Trend Needle Points North

The yuan will likely fluctuate between 7.1-7.3 against the U.S. dollar in 2025, as Chinese authorities are expected to keep the currency from overshooting should it temporarily fall below 7.3, National Business Daily reported Monday citing traders. The increasing use of yuan in cross-border trade and investment settlement will alleviate the volatility, and more companies are using forex derivatives to hedge the risk of yuan correction, weakening the "herd effect" of betting on one-way movement, the newspaper said. China's high-level forex reserves also provide strong support, acting as a deterrence against speculation, the newspaper added.

Greece is due to sell bills this week. We expect issuance to be E0.5bln in first round operations, in-line with last week. 

• Tomorrow, Greece will sell E500mln of the new 13-week Apr 4, 2025 GTB.

For more on future auctions see the full MNI Eurozone/UK T-bill auction calendar here.

• RES 4: 107.365 High Dec 12
• RES 3: 107.170 High Dec 20  
• RES 2: 107.122 20-day EMA 
• RES 1: 107.055 High Dec 30      
• PRICE: 107.025 @ Close Dec 23   
• SUP 1: 106.900 Intraday low            
• SUP 2: 106.854 1.382 proj of the Dec 2 - 6 - 12 price swing   
• SUP 3: 106.810 1.500 proj of the Dec 2 - 6 - 12 price swing
• SUP 4: 106.766 1.618 proj of the Dec 2 - 6 - 12 price swing 

The current bear cycle in Schatz futures remains intact and recent weakness reinforces this theme. Friday’s sell-off confirms a resumption of the bear leg and opens 106.854, a Fibonacci projection. Initial firm resistance is seen at 107.122, the 20-day EMA. It has recently been pierced, a clear break of it would highlight a potential reversal. For now, short-term gains are considered corrective.