SWITZERLAND DATA: January CPI Preview [1/2] - Energy To Drag Headline

• RES 4: 5097.00 High Oct 14
• RES 3: 5080.00 High Oct 15      
• RES 2: 5068.13 0.764 proj of the Nov 21 - Dec 9 - 20 price swing   
• RES 1: 5054.00 High Jul 8          
• PRICE: 5008.00 @ 06:20 GMT Jan 14  
• SUP 1: 4937.06/4876.00 50-day EMA / Low Jan 3         
• SUP 2: 4829.00 Low Dec 20 and key short-term support     
• SUP 3: 4800.87 76.4% retracement of the Nov 21 - Dec 9 bull cycle 
• SUP 4: 4775.00 Low Nov 29 

A bull cycle in the Eurostoxx 50 futures contract remains intact and the latest pullback appears corrective. Initial support is at 4937.06, the 50-day EMA. It has been pierced, a clear break of this EMA would undermine a bullish theme and signal scope for a deeper retracement. For bulls, resistance at 5040.00, Dec 9 high, has recently been pierced. Clearance of it would resume the bull cycle that started on Nov 21 and open 5068.13, a Fibonacci projection. 

• RES 4: 0.8494 High Aug 26 ‘24 
• RES 3: 0.8471 61.8% retracement of the Aug 8 - Dec 19 downleg  
• RES 2: 0.8448 High Oct 31 and reversal trigger
• RES 1: 0.8424 50.0% retracement of the Aug 8 - Dec 19 downleg
• PRICE: 0.8395 @ 06:31 GMT Jan 14
• SUP 1: 0.8321/8284 50-day EMA / Low Jan 8 
• SUP 2: 0.8263 Low Dec 31
• SUP 3: 0.8223 Low Dec 19 
• SUP 4: 0.8203 Low Mar 7 2022 and a major support

EURGBP traded sharply higher last week and remains firm. The cross has cleared the December highs. This undermines the recent bearish theme and suggests scope for a stronger short-term recovery. Note too that 0.8376, the Nov 19 high and a key resistance, has also been cleared. Sights are on 0.8424, a Fibonacci retracement and the Jan 13 high. A break of this level would open 0.8448, the Oct 31 high. Support at the 50-day EMA is at 0.8318.

• RES 4: 107.065 High Jan 2
• RES 3: 106.965 High Jan 3  
• RES 2: 106.873 20-day EMA 
• RES 1: 106.650/785 High Jan 10 / 6     
• PRICE: 106.535 @ 06:05 GMT Jan 14   
• SUP 1: 106.460 Low Jan 13             
• SUP 2: 106.375 Low Oct 31  (cont) and a key support
• SUP 3: 106.342 2.764 proj of the Dec 2 - 6 - 12 price swing
• SUP 4: 106.255 3.000 proj of the Dec 2 - 6 - 12 price swing

The current bear cycle in Schatz futures remains intact and recent weakness, including Monday's fresh cycle low, reinforces this theme. The move down confirms a resumption of the bear leg and sights are on 106.375 next, the Oct 31 ‘24 low (cont). Firm resistance is seen at 106.873, the 20-day EMA. Short-term gains would be considered corrective and allow an oversold condition to unwind.