ENERGY SECTOR: Other BP Headlines On Sale Of Lubricants Unit

• A tight 17 ticks range for Bund Overnight, the US are out for MLK day and Trump's inauguration.
• While the contract is showing slightly in the red, it remains closer to Friday's high, where the initial resistance will be seen.
• The 131.97 high on Friday was also close to the 2.50% level in Yield terms.
• Initial small support comes at 131.50, Friday's low.
• The German PPI came below expectation on the Cash open, but was only worth a 8 ticks gain for the Bund, and there's no Data left for today's session.
• SPEAKERS: ECB Vujcic, Holzmann, Trump's Inauguration should start before noon Local time.

• RES 4: 122.85 High Dec 11     
• RES 3: 120.98 61.8% retracement of the Dec 11 - Jan 13 bear leg   
• RES 2: 120.45 High Jan 2   
• RES 1: 119.33/35 20-day EMA / High Jan 17  
• PRICE: 119.07 @ Close Jan 17 
• SUP 1: 117.16 Low Jan 13 and the bear trigger          
• SUP 2: 116.59 76.4% retrace of the Jun - Dec ‘24 bull cycle (cont)
• SUP 3: 116.07 Low Jul 8 ‘24 (cont)
• SUP 4: 115.45 Low Jul 3 ‘24 (cont)     

The current bear cycle in BTP futures remains in play and last week’s fresh cycle low reinforces current conditions. However, from a short-term perspective, the latest rally highlights a corrective phase. Resistance to watch is 119.33, the 20-day EMA. A clear break of this level would signal scope for a stronger retracement. The bear trigger has been defined at 117.16, the Jan 13 low.

• RES 4: 165.43 High Nov 8 
• RES 3: 164.90 High Dec 30 and a key short-term resistance  
• RES 2: 164.55 High Jan 7
• RES 1: 162.08/89 50-day EMA / High Jan 15 
• PRICE: 161.10 @ 7:06 GMT Jan 20 
• SUP 1: 159.73 Low Jan 17     
• SUP 2: 159.51 61.8% retracement of the Dec 3 - 30 bull cycle   
• SUP 3: 158.67 Low Dec 11
• SUP 4: 158.24 76.4% retracement of the Dec 3 - 30 bull cycle

EURJPY traded lower last Thursday marking an extension of the current bear cycle. The cross has pierced support at 160.04, the Jan 13 low. A clear break of this level would strengthen a bearish threat and signal scope for a deeper retracement. The next price point to watch is 159.51, a Fibonacci retracement. The cross has recovered from its recent lows, a move above 162.89, the Jan 15 high, would reinstate the recent bullish theme.