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Price Signal Summary - Bunds Trade Lower And Breach Support

OUTLOOK
  • In the FI space, Bund futures are trading lower today. This has resulted in a break of support at 131.70, the Aug - 28 low. The move lower undermines the recent bullish theme and signals scope for a deeper retracement. The next support to watch lies at 131.20, the Aug 23 low. Clearance of this level would expose 130.14, the Aug 15 low and a key support. Key resistance is at 133.45, the Aug 8 high.
  • Gilt futures are trading lower today and this has resulted in a break of support at 94.14, the Aug 29 low. The break undermines the recent bullish theme and highlights a possible reversal . If correct, it suggests potential for a deeper retracement. The next support is 93.63, 50.0% retracement of the Aug 17 - Sep 1 rally. On the upside, key short-term resistance is 95.79, the Sep 1 high. A breach of this level would reinstate a bullish theme.

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