MNI Asian Morning FI Technical Analysis

19 December 2017

By Kyle Shortland

Click below for today's MNI FI Technical Analysis Report -

http://tinyurl.com/phluope

AUSSIE 3-YR TECHS: (H18) Focus Shifts To 97.720-820 Support Region 

*RES 4: 98.065 - Hourly resistance Dec 4, High Dec 8 

*RES 3: 98.015 - High Dec 12 

*RES 2: 98.976 - 55-DMA 

*RES 1: 98.910 - Hourly resistance Dec 18

*PRICE: 97.890 @ 2030GMT

*SUP 1: 97.880 - Low Dec 18 

*SUP 2: 97.820 - Repeated daily lows 

*SUP 3: 97.770 - Low Sept 22 

*SUP 4: 97.720 - 2017 Low Sept 21

*COMMENTARY: Fresh 2mth lows add weight to the bearish case with focus now

having shifted to the 97.720-820 support region where 2017 lows are located. The

Bollinger base (97.900) and modestly O/S daily studies are concerns for bears.

In saying that, bulls continue to look for a close above the 55-DMA to ease

bearish pressure and above 98.065 to end bearish hopes and shift initial focus

back to 98.110-130.

AUSSIE 10-YR TECHS: (H18) Bulls Need Close Above 97.4400 Today 

*RES 4: 97.5200 - Low June 20 now resistance

*RES 3: 97.5118 - Bollinger band top

*RES 2: 97.5000 - Hourly resistance Dec 1, High Dec 8

*RES 1: 97.4400 - High Dec 18

*PRICE: 97.4200 @ 2030GMT

*SUP 1: 97.4000 - Low Dec 18

*SUP 2: 97.3650 - Low Dec 17

*SUP 3: 97.3547 - 200-DMA

*SUP 4: 97.2600 - High Oct 30 now support

*COMMENTARY: The contract remains heavy although the break of 97.4075 has so far

lacked follow through. Initial resistance is now noted at 97.4400 with bulls

needing a close above to ease bearish pressure. Bulls look for a close above

97.5200 to reconfirm a bullish bias and initially target 97.6100-6750 where 2017

highs are located. While 97.4400 caps pressure now remains on the 97.2600-3650

support region where key DMAs are clustered.

US 10-YR FUTURE TECHS: (H18) Pressure Returns To Key Support

*RES 4: 124-23 High Dec 6 

*RES 3: 124-22+ Daily Bear channel top 

*RES 2: 124-20+ 55-DMA 

*RES 1: 124-13+ High Dec 18

*PRICE: 124-08 @ 2030GMT

*SUP 1: 124-05 Hourly support Dec 13

*SUP 2: 123-29+ Low Dec 13

*SUP 3: 123-27 Lows Oct 25 & 27

*SUP 4: 123-04+ Daily Bear channel base

*COMMENTARY: Repeated topside failures ahead of the key 124-20+/23+ resistance

region where the bear channel top and 55-DMA are located sees pressure back on

the 124-05 support. Bears need a close below 124-05 to ease pressure on the

55-DMA and reconfirm focus on the key 123-27/29+ support region. Below 123-27

targets the channel base around 123-04+ today. Bulls now look for a close above

124-13+ to retain focus on 124-20+/23+.

US 10-YR YIELD TECHS: Bulls Need Close Above 2.398

*RES 4: 2.477 - Monthly High Oct 27 

*RES 3: 2.437 - High Nov 30 

*RES 2: 2.426 - High Dec 13 

*RES 1: 2.398 - Hourly resistance Dec 13

*PRICE: 2.392 @ 2030GMT

*SUP 1: 2.380 - High Dec 15 now support 

*SUP 2: 2.357 - Daily Bull channel base 

*SUP 3: 2.344 - Low Dec 14 

*SUP 4: 2.301 - 200-DMA

*COMMENTARY: Pressure on the channel base has failed to produce a break lower

with focus back on 2.398. Bulls still need a close above 2.398 to ease bearish

pressure and return initial focus to 2.426-437. Support layers building is less

than ideal for bears with a close below 2.380 needed to retain pressure on

2.344-357. Below 2.344 is needed to confirm a break of the channel base and

shift initial focus to 2.273-301 where 100 & 200-DMAs are noted.

JGB TECHS: (H18) Above 151.01 Initially Targets 151.19-21 

*RES 4: 151.19 - Monthly high Nov 22

*RES 3: 151.13 - High Nov 24

*RES 2: 151.05 - High Dec 8

*RES 1: 151.01 - High Dec 18

*PRICE: 150.97 @ 2030GMT

*SUP 1: 150.84 - Alternating hourly sup/res 

*SUP 2: 150.75 - Low Dec 5 

*SUP 3: 150.69 - 55-DMA 

*SUP 4: 150.61 - 200-DMA

*COMMENTARY: The 150.84 support remains key this week with bears needing a close

below to return pressure to 150.54-75 where key DMAs are clustered. Narrowing

Bollinger bands are suggestive of a breakout in the near future. Bulls now need

a close above 151.01 to see focus shift to 151.19-21 with above 151.21 to target

2017 highs (151.51). Daily studies are lingering at largely neutral levels.

--MNI Beijing Bureau; tel: +44 207-862-7435; email: kyle.shortland@mni-news.com

[TOPICS: MTABLE]