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Key Support Levels Broken On BTP and Bund

EGBS

Big moves lower in Europe futures don't appear to be headline-triggered - but rather more technical, with support levels being broken and longs appearing to bail out.

  • In particular, BTPs' drop through key 154.54/52 support on September BTP futures which we pointed out this morning has been broken, strengthening the case for a deeper pullback. The 50-day EMA support comes in at 153.59.
  • For Bunds, the 176.21 Aug 11 low was easily broken. We're now looking at the Jul 27 low of 175.82 as next support.

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