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Price Signal Summary - S&P E-Minis Pullback Likely A Correction

MARKET INSIGHT
  • In the equity space, bullish conditions remain intact in the S&P E-minis and pullback this week is considered corrective. Attention is on 4400.00 next. Key support is at 4279.25, Jul 8 low. EUROSTOXX 50 futures remain above last week's low of 3951.50. The contract has so far failed to challenge initial resistance at 4101.50, Jul 1 high where a break would neutralise recent bearish price signals and signal scope for a stronger recovery.3951.50, Jul 8 low is key support.
  • In FX, the USD outlook remains bullish. The EURUSD needle still points south. The focus is on 1.1704, Mar 31 low. Gains are considered corrective with resistance at 1.1881, Jul 9 high. GBPUSD remains vulnerable. The focus is on support and a bear trigger at 1.3733, Jul 2 low. The 50-day EMA offers resistance and intersects at 1.3933. USDJPY failed to hold onto Wednesday's high and challenge resistance at 110.82, Jul 7 high. The reversal lower Wednesday suggests the recent 3-day recovery has been a correction and is over. Support at 109.53, Jul 8 low appears exposed.
  • On the commodity front, Gold has this week cleared the 50-day EMA. The break higher strengthens bullish conditions with attention on $1833.7 (tested yesterday) and $1853.3, 50.0% and 61.8% retracement levels of the Jun 1 - 29 decline. Brent (U1) futures attention is on support at $72.11, Jul 8 low. A break would be bearish. WTI (Q1) key support to watch is at 70.76, Jul 8 low.
  • Within FI, Bund futures recovered off Wednesday's low. Conditions remain bullish and 174.77, Jul 8 high and the bull trigger has been probed. A clear break would open 174.97 next, Mar 3 high (cont). Gilt futures traded lower yesterday. Broader conditions are bullish and the recent pullback is considered corrective. Attention is on 129.92, Jul 8 high and the bull trigger. Support to watch is 128.54/39, Jul 14 low and the Jun 11 high and recent breakout level.

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