OUTLOOK: Price Signal Summary - Bear Cycle In Oil Futures Remains In Play

SX5E (19th Dec) bought for 2.8 in 12k vs 1.32k at 160.50.

SFIJ5/M5 95.95/96.05 calendar call spread, bought the June for 1 in 4k.

• In FX, EURUSD is lower today however, a short-term bull cycle - a correction - remains in play. Last week’s gains resulted in a breach of the 50-day EMA, at 1.0457. The break higher strengthens short-term bullish conditions and sights are on 1.0574, 38.2% of the Sep 25 - Jan 13 bear leg. Initial support to watch is 1.0377, the 20-day EMA. A move through the EMA would signal a possible reversal.
• A bull cycle in GBPUSD remains in play. The pair has recently cleared the 20-day EMA, marking an extension of the reversal that started Jan 13. Attention is on the 50-day EMA, at 1.2520 and an important resistance. Clearance of the average would highlight a stronger bull cycle. Medium-term trend signals are unchanged, they remain bearish. A reversal lower would refocus attention on 1.2100, the Jan 10 low and bear trigger. First support to watch is 1.2387, the 20-day EMA. The
• primary trend condition in USDJPY remains bullish, however, Monday’s move down highlights a stronger short-term bear cycle. The pair has breached two important support points; 155.12, the 50-day EMA, and 155.13, a trendline drawn from the Sep 16 ‘24 high. This opens 152.55, 61.8% of the Dec 3 - Jan 10 bull leg. Initial firm resistance has been defined at 156.75, the Jan 23 high. Clearance of this level would be a bullish development.