US STOCKS: Late Equities Roundup: Reversing Early Gains Ahead Earnings, NFP

• RES 4: 166.53 2.0% 10-dma envelope
• RES 3: 166.10 High Nov 6  
• RES 2: 165.04 High Nov 15 and a key short-term resistance
• RES 1: 164.40 Intraday high
• PRICE: 163.44 @ 19:52 GMT Jan 7 
• SUP 1: 162.46/160.91 20-day EMA / Low Jan 2    
• SUP 2: 160.54 50.0% retracement of the Dec 3 - 30 bull cycle   
• SUP 3: 159.51 61.8% retracement of the Dec 3 - 30 bull cycle
• SUP 4: 158.67 Low Dec 11

EURJPY has traded higher this week but remains below the Dec 30 high. The recent move down appears corrective and a bullish short-term condition is intact. The next support to watch lies at 160.54, 50.0% of the Dec 3 - 30 bull cycle. The 61.8% level is at 159.51. A resumption of gains would open 165.04, the Nov 15 high. Clearance of this hurdle would expose 166.69, the Oct 31 high and a major resistance.

• RES 3: 96.501 - 76.4% of the Mar 14 - Nov 1 ‘23 bear leg
• RES 2: 96.207 - 61.8% of the Mar 14 - Nov 1 ‘23 bear leg
• RES 1: 95.851 - High Dec 11 
• PRICE: 95.440 @ 19:34 GMT Jan 7
• SUP 1: 95.373 - 0618 proj of the Dec 11 - 23 - 31 price swing  
• SUP 2: 95.275 - Low Nov 14
• SUP 3: 94.590 - 1.0% 10-dma envelope

The Aussie 10-yr futures contract continues to trade below the Dec 11 high of 95.851. The contract has traded through the Dec low. A stronger bearish reversal would expose 95.275, the Nov 14 low and a key support. A break of this level would strengthen a bearish theme. For bulls, a reversal higher and a breach of 95.851, the Dec 11 high, would instead reinstate a bull cycle and refocus attention on resistance at 96.207, a Fibonacci retracement point.

• WTI has gained ground today, amid signs of a tighter-than-expected prompt market. Traders are also keeping an eye on colder temperatures in the US and any impacts on production.
• WTI Feb 25 is up by 1.1% at $74.4/bbl.
• OPEC 12 output in December was 26.46m b/d, down 49k b/d on the month, according to a Reuters survey.
• For WTI futures, recent gains have exposed key short-term resistance at $76.41, the Oct 8 high. On the downside, a reversal lower would expose support at the 20-day EMA, at $71.10.
• Meanwhile, Henry Hub renewed its pull back to trade lower on the day. Despite this, prices remain supported by current cold weather, curtailed production and strong LNG export demand.
• US Natgas Feb 25 is down by 6.2% at $3.45/mmbtu.
• Spot gold has risen by 0.5% to $2,650/oz, amid reports that the PBoC expanded its gold reserves for a second month in December. Bullion held by the central bank rose to 73.29mn fine troy ounces last month, from 72.96mn previously.
• A bear threat in gold remains present, despite the latest recovery, with first firm support to watch at $2,583.6, the Dec 19 low.
• On the upside, a continuation of gains would instead signal scope for a climb towards resistance at $2,726.2, the Dec 12 high.