MNI BRIEF: Fed Banks Unanimous On Steady Discount Rate-Minutes

MNI BRIEF: Powell - Immigration Has Neutral Inflation Impact Over Long Run

MNI China Daily Summary: Tuesday, July 9

MNI BRIEF: Mexico Inflation 4.98% In June, Above Consensus

CORRECTED-MNI: China H2 Steel Outlook Subdued

MNI BOK WATCH: Slowing Inflation Puts Q4 Cut In Sight

US Treasury Auction Calendar

EZ/UK Bond Supply Calendar: 12/14-Year Bund Auction on Wednesday

EZ/UK T-Bill Calendar: 12-Month BOT Auction On Wednesday

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Price Signal Summary - Gold Sell-Off Exposes Key Short-Term Support

MARKET INSIGHT
  • In the equity space, S&P E-Minis traded sharply lower Friday and again yesterday. Price has however recovered from yesterday’s low of 4195.25. Recent weakness has confirmed a resumption of the current downtrend and has opened 4129.50, the Mar 15 low. A near-term concern for bears is a hammer candle formation yesterday. If correct, it suggests scope for a stronger corrective bounce. Initial resistance to watch is 4355.50, low Apr 18. EUROSTOXX 50 futures remain vulnerable. This follows a failure last week to hold on to the week’s high of 3883.00 (Apr 18). Support at 3684.00, Apr 12 low, has been breached and this opens 3626.50, the 50.0% retracement of the Mar 7 - 29 rally.
  • In FX,EURUSD remains in a clear downtrend. Recent weakness has resulted in a break of 1.0758, the Apr 14 low and a short-term bear trigger. This has confirmed a resumption of the downtrend and signals scope for a move towards 1.0636 next, Mar 23 2020 low. GBPUSD remains vulnerable. The breach of former support at 1.2974, Apr 13 low, has confirmed a resumption of the primary downtrend. The focus is on 1.2676, Sep 23, 2020 low. USDJPY is unchanged and trend conditions remain bullish. The recent period of consolidation appears to be a bull flag formation, reinforcing current bullish trend conditions. The focus is on 129.44 next, 0.764 projection of the Feb 24 - Mar 28 - 31 price swing. Sights are also on the psychological 130.00 handle.
  • On the commodity front, Gold traded lower Monday and the yellow metal has traded below its 50-day EMA. The pullback from last week’s high of $1998.4 (Apr 18), highlights a bearish threat and attention is on key support that lies at $1890.2, the Mar 29 low. This level also represents an important bear trigger. In the Oil space, WTI futures continue to challenge the 50-day EMA, which intersects at $97.83 today. A clear break of the average would strengthen the bearish threat and open $90.37, the Mar 15 low.
  • The trend condition in the FI space is unchanged and remains bearish. Bund futures potential is for a test, and break, of the 153.00 handle next. Short-term gains in Gilts are considered corrective. A resumption of weakness would open 117.04, 0.764 projection of the Mar 1 - 28 - Apr 4 price swing. Resistance to watch today is at 119.54, the 20-day EMA.
Fixed Income Technical AnalysisForeign Exchange Technical AnalysisHomepagemarkets-real-timeEmerging Market NewsBulletMarketsFixed Income BulletsForeign Exchange Bullets
Fixed Income Technical AnalysisForeign Exchange Technical AnalysisHomepagemarkets-real-timeEmerging Market NewsBulletMarketsFixed Income BulletsForeign Exchange Bullets

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.