MNI Asian Morning FI Technical Analysis

22 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: 98.974 - 55-DMA 

*RES 3: 98.962 - 100-DMA 

*RES 2: 98.910 - Hourly resistance Dec 18 

*RES 1: 98.855 - High Dec 21

*PRICE: 97.830 @ 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: Recent 2mth lows add weight to the bearish case with focus firmly

on 97.720-820 where 2017 lows are located. The Bollinger base (97.814) and O/S

daily studies are concerns for bears with potential to limit follow through. In

saying that, bulls look for a close above 97.855 to gain breathing room and

above 97.910 to shift focus back to 97.962-98.015 where key DMAs are clustered.

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

*RES 4: 97.5486 - 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: 97.3050 @ 2030GMT

*SUP 1: 97.2600 - High Oct 30 now support

*SUP 2: 97.2200 - High Oct 25 now support

*SUP 3: 97.1450 - Low Oct 25

*SUP 4: 97.0900 - Monthly Low Oct 3

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

the contract remaining heavy. The close below the 100-DMA (97.3226) confirmed

focus on 97.2200-2600 and potentially targets a move back to 97.0750-0900.

Resistance layers are building and weighing with bulls still needing a close

above 97.3650 to ease bearish pressure and above 97.4400 to shift focus back to

97.5200.

US 10-YR FUTURE TECHS: (H18) Bears Focused On 122-20+/123-07+

*RES 4: 124-05 Hourly support Dec 13 now resistance

*RES 3: 123-29+ Low Dec 13 now resistance

*RES 2: 123-27 Lows Oct 25 & 27 now resistance

*RES 1: 123-21 Hourly resistance Dec 20

*PRICE: 123-16 @ 2030GMT

*SUP 1: 123-07+ High Mar 13 now support

*SUP 2: 123-02+ Daily Bear channel base

*SUP 3: 122-20+ Monthly Low Mar 14

*SUP 4: 122-14+ 2016 Low Dec 15 2016

*COMMENTARY: Repeated topside failures ahead of the key 124-17+/23+ resistance

region where the bear channel top and 55-DMA are located resulted in a break of

key supports and bears 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 (123-17+) is a concern. Layers of resistance are weighing with

bulls needing a close above 124-05 to return focus to 124-17+/23+.

US 10-YR YIELD TECHS: 2.423-472 Support Key

*RES 4: 2.641 - 2016 High Dec 15 

*RES 3: 2.628 - 2017 High Mar 13 

*RES 2: 2.544 - High Mar 17 

*RES 1: 2.536 - Weekly Bear channel top (Off 2014 high)

*PRICE: 2.483 @ 2030GMT

*SUP 1: 2.472 - Hourly support Dec 20 

*SUP 2: 2.443 - Hourly support Dec 19 

*SUP 3: 2.423 - Hourly support Dec 19a 

*SUP 4: 2.401 - Hourly resistance Dec 19 now support

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

the correction higher seeing a close above 2.477 shift bullish focus to

2.628-641 where 2017 & 2016 highs are situated. Daily studies remain well placed

for gains. Layers of support are building and providing bulls confidence. Bears

need a close below 2.472 to ease immediate bullish pressure and below 2.423 to

confirm a correction back to 2.344-376.

JGB TECHS: (H18) Bulls Need Close Above 150.81 

*RES 4: 151.05 - High Dec 8

*RES 3: 151.01 - High Dec 18

*RES 2: 150.93 - Hourly support Dec 19 now resistance

*RES 1: 150.81 - Hourly support Dec 20 now resistance

*PRICE: 150.72 @ 2030GMT

*SUP 1: 150.65 - Hourly support Dec 21 

*SUP 2: 150.53 - Low Dec 21 

*SUP 3: 150.08 - Monthly Low Oct 3 

*SUP 4: 150.06 - Low July 20

*COMMENTARY: The lack of follow through on the marginal break of 150.54 is less

than ideal for bears who now look for a close below 150.53 to confirm focus on

150.06-19 where monthly lows are noted. Daily studies are well placed for

further losses. Bulls still need a close above 150.81 to ease bearish pressure

and shift initial focus back to 151.01-05.

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

[TOPICS: MTABLE]