MNI Asian Morning FI Technical Analysis

3 January 2018

By Kyle Shortland

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

http://tinyurl.com/phluope

AUSSIE 3-YR TECHS: (H18) Bulls Need Close Above 97.855 

*RES 4: 97.971 - 55-DMA 

*RES 3: 97.950 - 100-DMA 

*RES 2: 97.910 - Hourly resistance Dec 18 

*RES 1: 97.855 - High Dec 21

*PRICE: 97.815 @ 2030GMT

*SUP 1: 97.770 - Low Sept 22 

*SUP 2: 97.720 - 2017 Low Sept 21 

*SUP 3: 97.605 - 2015 Low Dec 12 

*SUP 4: 97.550 - Monthly Low Dec 3 2014

*COMMENTARY: O/S daily studies appear to be impacting with hesitation ahead of

the 97.720-770 support region resulting in a bounce last Wednesday. Bulls

continue to look for a close above 97.855 to ease bearish pressure and above

97.910 to shift immediate focus back to 97.955-98.040 where key DMAs are

clustered. While 97.855 caps bears remain focused on tests of 2017 lows.

AUSSIE 10-YR TECHS: (H18) Layers of Resistance 97.3625-4000 

*RES 4: 97.4000 - Low Dec 18 now resistance

*RES 3: 97.3886 - 21-DMA

*RES 2: 97.3650 - Low Dec 17 now resistance

*RES 1: 97.3625 - 55-DMA, 200-DMA

*PRICE: 97.2750 @ 2030GMT

*SUP 1: 97.2400 - Low Dec 27

*SUP 2: 97.2200 - High Oct 25 now support

*SUP 3: 97.2176 - 200-WMA

*SUP 4: 97.1450 - Low Oct 25

*COMMENTARY: Layers of resistance 97.3625-4000 remain key with bulls needing a

close above 97.4000 to confirm breaks of key DMAs, ending bearish hopes and

shifting immediate focus to 97.5200. Bears retain the advantage with focus

currently on 97.2200. bears need a close below to add weight to the case for a

test of 2017 lows. O/S daily studies looking to correct are the key concern for

bears.

US 10-YR FUTURE TECHS: (H18) Above 21-DMA To Ease Bearish Pressure

*RES 4: 124-23  High Dec 6

*RES 3: 124-16+ Daily Bear channel top

*RES 2: 124-14+ 55-DMA

*RES 1: 124-02+ 21-DMA

*PRICE: 123-23+ @ 2030GMT

*SUP 1: 123-17+ Low Jan 2

*SUP 2: 123-12+ Low Dec 21

*SUP 3: 123-07+ High Mar 13 now support

*SUP 4: 122-31+ Daily Bear channel base

*COMMENTARY: Despite recovering from Dec lows the contract has remained capped

ahead of the 21-DMA. Bulls now look for a close above the 21-DMA to confirm an

easing of bearish pressure and return focus to layers of resistance 124-14+/23

where the 55-DMA and bear channel top are situated. While the 21-DMA caps

immediate bearish focus remains on tests of the bear channel base coming in

around 122-31+ today.

US 10-YR YIELD TECHS: Bears Need Close Below 55-DMA

*RES 4: 2.544 - High Mar 17 

*RES 3: 2.530 - Weekly Bear channel top (Off 2014 high) 

*RES 2: 2.504 - High Dec 21 

*RES 1: 2.481 - High Jan 2

*PRICE: 2.460 @ 2030GMT

*SUP 1: 2.406 - 21-DMA 

*SUP 2: 2.377 - 55-DMA 

*SUP 3: 2.344 - Low Dec 14 

*SUP 4: 2.297 - 200-DMA

*COMMENTARY: Bulls take comfort in support ahead of the 21-DMA providing a

bounce to start the new year. Bulls now look for a close above 2.504 to confirm

focus on tests of 2016 & 2017 highs 2.629-641. Layers of support remain with

bears now needing a close below the 55-DMA to hint at a test of the 200-DMa with

below 2.344 to confirm. The Bollinger top (2.508) remains the key concern for

bulls.

JGB TECHS: (H18) Bulls Need Close Above 21-DMA 

*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: 150.85 - 21-DMA

*PRICE: 150.81 @ 2030GMT

*SUP 1: 150.77 - Hourly support Dec 29 

*SUP 2: 150.65 - Hourly support Dec 21 

*SUP 3: 150.53 - Low Dec 21 

*SUP 4: 150.08 - Monthly Low Oct 3

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

than ideal for bears who continue to look for a close below 150.53 to confirm

focus on 150.06-19 where monthly lows are noted. The bounce ahead of the 200-DMA

(150.62) now sees pressure back on the 21-DMA. Bulls need a close above the

21-DMA to confirm an easing of bearish pressure and shift focus to tests of

151.19-32.

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

[TOPICS: MTABLE]