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BUND TECHS: (U4) Corrective Cycle Still In Play

BUND TECHS
  • RES 4: 136.45 76.4% of the Dec 27 - May 31 downleg (cont)       
  • RES 3: 136.28 High Aug 5 and the bull trigger
  • RES 2: 135.17/135.59 High Aug 14 / 6 
  • RES 1: 134.49 High Aug 29                    
  • PRICE: 133.37 @ 05:41 BST Sep 3
  • SUP 1: 133.16 Low Sep 2            
  • SUP 2: 133.00 Round number support 
  • SUP 3: 132.54 61.8% retracement of the Jul 7 - Aug 5 rally
  • SUP 4: 132.08 / Low Jul 26

Bund futures traded lower Monday, starting the week on a bearish note. Short-term weakness still appears to be corrective and this is allowing a recent overbought condition to unwind. Note that 133.41, the 50-day EMA, has been pierced, a clear break of it would highlight scope for a deeper retracement potentially towards 132.54,  61.8% of the Jul 7 - Aug 5 rally. First resistance is 134.49, the Aug 29 high.

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