MNI Asian Morning FI Technical Analysis

22 May 2018

By Kyle Shortland

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

http://tinyurl.com/phluope

AUSSIE 3-YR TECHS: (M18) Bulls Need Close Above 97.770 

*RES 4: 97.823 - Daily Bear channel top 

*RES 3: 97.805 - 55-DMA 

*RES 2: 97.770 - Lows May 9 & 10 now resistance 

*RES 1: 97.761 - 21-DMA

*PRICE: 97.750 @ 2130GMT

*SUP 1: 97.735 - Hourly support May 21 

*SUP 2: 97.700 - Low May 17 

*SUP 3: 97.695 - Bollinger band base 

*SUP 4: 97.675 - 2018 Low Apr 24

*COMMENTARY: Bulls take comfort in support emerging ahead of 2018 lows last week

and pressure returning to the 21-DMA. Bulls continue to look for a close above

97.770 to ease bearish pressure, confirm a break of the 21-DMA and shift initial

focus to 97.805-865 where 55 & 100-DMAs are noted. While 97.770 caps bears

retain the advantage with immediate focus on 2018 lows. Below 97.675 shifts

focus to 97.605 2015 lows.

     AUSSIE 10-YR TECHS: (M18) Flirting With LT Bull Channel Base 

*RES 4: 97.2687 - 200-DMA

*RES 3: 97.2167 - 100-DMA

*RES 2: 97.1800 - Low May 10 now resistance

*RES 1: 97.1500 - Alternating daily support/resistance

*PRICE: 97.1250 @ 2130GMT

*SUP 1: 97.1000 - Hourly resistance May 17 now support

*SUP 2: 97.0621 - Bollinger band base

*SUP 3: 97.0450 - 2018 Low Feb 6

*SUP 4: 96.9875 - 2017 Low Mar 10 2017

*COMMENTARY: Bulls take comfort in the gains Friday ensuring the contract didn't

close the week below the LT weekly bull channel base (97.1024). Bears now look

for a close below 2018 lows to confirm a break and below 96.9650 needed to

initially target 96.7950 2015 lows. Layers of resistance remain 97.1800-3150

where key DMAs and the 200-WMA are noted. Above this region initially targets

97.4000-4400.

     US 10-YR FUTURE TECHS: (M18) Bulls Need Close Above 21-DMA

*RES 4: 119-31+ High Apr 4

*RES 3: 119-08+ 21-DMA

*RES 2: 119-07  High May 15

*RES 1: 118-31  Low Apr 25 now resistance

*PRICE: 118-28 @ 2130GMT

*SUP 1: 118-19+ High May17 now support

*SUP 2: 118-10+ 2018 Low May 17

*SUP 3: 117-29+ Monthly Low Apr 8 2011

*SUP 4: 117-22+ 2011 Low Feb 9

*COMMENTARY: The bounce to end the week was less than ideal for bulls given

daily studies looking to correct from O/S and increases the risk of a correction

that tests the 21-DMA. In saying that, bulls still need a close above the 21-DMA

to confirm an easing of bearish pressure and to shift initial focus to

119-31+/120-06+ where the 55-DMA is located. While the 21-DMA caps bears remain

focused on the weekly bear channel base around 117-00+.

     US 10-YR YIELD TECHS: Looking Offered

*RES 4: 3.223 - Monthly High July 1 2011 

*RES 3: 3.184 - High July 8 2011 

*RES 2: 3.139 - Daily Bull channel top 

*RES 1: 3.084 - High May 21

*PRICE: 3.058 @ 2130GMT

*SUP 1: 3.054 - Low May 16 & 18 

*SUP 2: 3.011 - Hourly support May 15 

*SUP 3: 2.998 - 21-DMA 

*SUP 4: 2.937 - Low May 7

*COMMENTARY: The yield is looking offered having sold-off Friday from around the

daily bull channel top. Bears now focus on the 21-DMA with a close below needed

to confirm a break of 3.011 and shift focus back to 2.876-937 where the 55-DMA

(2.897) is located. Bulls now need a close above 3.084 to gain breathing room

and above 3.128 2018 highs to reconfirm the bullish bias and focus on

3.184-3.254 where channel tops and July 2011 monthly high are situated.

     JGB TECHS: (M18) Bulls Need Close Above 55-DMA

*RES 4: 151.06 - High Mar 12

*RES 3: 151.03 - High Apr 12

*RES 2: 150.95 - Low Apr 12 now resistance

*RES 1: 150.84 - 55-DMA

*PRICE: 150.76 @ 2130GMT

*SUP 1: 150.62 - Low May 16 

*SUP 2: 150.53 - Bollinger band base 

*SUP 3: 150.52 - Alternating daily support/resistance 

*SUP 4: 150.39 - Monthly Low Apr 26

*COMMENTARY: Bears have so far failed to gain traction below the 200-DMA

(150.72) with downside follow through lacking. Bulls continue to look for a

close above the 55-DMA to shift focus to layers of resistance Y150.95-151.06.

While the 55-DMA caps bears focus on 150.36-39 but now need a close below 150.62

to add weight to their case. Daily studies are well placed for a fresh leg

lower.

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

[TOPICS: MTABLE]