MNI Asian Morning FI Technical Analysis

20 December 2017

By Kyle Shortland

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

http://tinyurl.com/phluope

AUSSIE 3-YR TECHS: (H18) Immediate Focus On 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: 97.840 @ 2030GMT

*SUP 1: 97.820 - Repeated daily lows 

*SUP 2: 97.770 - Low Sept 22 

*SUP 3: 97.720 - 2017 Low Sept 21 

*SUP 4: 97.605 - 2015 Low Dec 12

*COMMENTARY: Continued fresh 2mth lows add weight to the bearish case with focus

firmly on the 97.720-820 support region where 2017 lows are located. The

Bollinger base (97.864) and O/S daily studies are concerns for bears with

potential to limit follow through. In saying that, bulls now look for a close

above 97.910 to ease immediate bearish pressure and above the 55-DMA to hint at

a move back to 98.110-130 with above 98.065 to confirm.

AUSSIE 10-YR TECHS: (H18) Potential For Move Targeting 97.0750-0900 

*RES 4: 97.5118 - Bollinger band top

*RES 3: 97.5000 - Hourly resistance Dec 1, High Dec 8

*RES 2: 97.4400 - High Dec 18

*RES 1: 97.3650 - Low Dec 17 now resistance

*PRICE: 97.3300 @ 2030GMT

*SUP 1: 97.3236 - 100-DMA

*SUP 2: 97.2600 - High Oct 30 now support

*SUP 3: 97.2200 - High Oct 25 now support

*SUP 4: 97.1450 - Low Oct 25

*COMMENTARY: Having looked heavy Tuesday bears have not been disappointed with

the contract remaining heavy and pressuring the 100-DMA. Studies remain well

placed for losses with a close below the 100-DMA to confirm focus on

97.2200-2600 and potentially target a move back to 97.0750-0900. Resistance

layers are building and weighing with bulls now needing a close above 97.4400 to

shift focus back to 97.5200.

US 10-YR FUTURE TECHS: (H18) Focus Shifts To 122-20+/123-07+

*RES 4: 124-13+ High Dec 18

*RES 3: 124-05 Hourly support Dec 13 now resistance

*RES 2: 123-29+ Low Dec 13 now resistance

*RES 1: 123-27 Lows Oct 25 & 27 now resistance

*PRICE: 123-22+ @ 2030GMT

*SUP 1: 123-20 Low Dec 19

*SUP 2: 123-07+ High Mar 13 now support

*SUP 3: 123-04+ Daily Bear channel base

*SUP 4: 122-20+ Monthly Low Mar 14

*COMMENTARY: Repeated topside failures ahead of 124-19+/23+ where the bear

channel top and 55-DMA are located resulted in a break of key supports and bears

now focused on 122-20+/123-07+ where monthly lows and the bear channel base are

noted. Daily studies are well placed for losses but the Bollinger base (123-27+)

is a concern. Layers of resistance are weighing with bulls needing a close above

124-05 to ease bearish pressure and return focus to 124-19+/23+.

US 10-YR YIELD TECHS: Above 2.477 Targets 2017 High

*RES 4: 2.628 - 2017 High Mar 13 

*RES 3: 2.544 - High Mar 17 

*RES 2: 2.536 - Weekly Bear channel top (Off 2014 high) 

*RES 1: 2.477 - Monthly High Oct 27

*PRICE: 2.461 @ 2030GMT

*SUP 1: 2.443 - Hourly support Dec 19 

*SUP 2: 2.423 - Hourly support Dec 19a 

*SUP 3: 2.401 - Hourly resistance Dec 19 now support 

*SUP 4: 2.380 - High Dec 15 now support

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

the correction higher seeing immediate pressure back on 2.477 Oct highs. Bulls

need a close above this level to confirm overall focus on tests of 2017 highs.

Daily studies are well placed for further topside. Layers of support building

add support to the bullish case. Bears now look for a close below 2.423 to ease

immediate bullish pressure.

JGB TECHS: (H18) Looking A Little Heavy 

*RES 4: 151.13 - High Nov 24

*RES 3: 151.05 - High Dec 8

*RES 2: 151.01 - High Dec 18

*RES 1: 150.93 - Hourly support Dec 19 now resistance

*PRICE: 150.84 @ 2030GMT

*SUP 1: 150.75 - Low Dec 5 

*SUP 2: 150.70 - 55-DMA 

*SUP 3: 150.61 - 200-DMA 

*SUP 4: 150.54 - High Nov 2 now support

*COMMENTARY: Bears take comfort in pressure resulting in a break of 150.84

although follow through has so far been lacking. Bears now focus on the

150.54-75 region where 55, 100 & 200-DMAs are situated. A close below 150.54 is

now needed to confirm breaks of DMAs and target 150.06-19 where Oct lows are

noted. Bulls need a close above 151.01 to see focus shift to 151.19-21 with

above 151.21 to target 2017 highs (151.51).

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

[TOPICS: MTABLE]