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MNI DAILY TECHNICAL ANALYSIS - Bearish Gilt Theme Remains

Story

Price Signal Summary – Bearish Gilt Theme Remains

  • S&P E-Minis continue to trade below their recent highs. However, recent S/T weakness is considered corrective and the uptrend remains intact. Price has recently traded through support at the 20-day EMA, at 5840.25, but is - for now - trading above this average once again. Eurostoxx 50 futures continue to trade within its recent range. For now, a bear threat still remains present. The contract traded sharply lower on Oct 15 and has pierced the 50-day EMA, at 4950.11. A clear break of this average would undermine a recent bullish theme.
  • The trend theme in GBPUSD remains bearish and short-term gains are considered corrective. The move down last week resulted in a breach of 1.2959, the 61.8% retracement of the Aug 8 - Sep 25 bull leg. The trend condition in USDJPY remains bullish and price continues to trade at the recent highs. The pair's latest gains have confirmed a resumption of the current uptrend. Price has traded through 153.40, the 61.8% retracement of the downleg posted off the July 3rd high. The USDCAD trend outlook remains bullish and the pair traded higher once again on Tuesday. Price has recently cleared 1.3822, 76.4% of the Aug 5 - Sep 25 bear leg. The breach reinforces a bullish theme and opens 1.3946.
  • The trend condition in Gold is unchanged and bulls remain in the driver’s seat. The latest climb has resulted in a breach of $2685.6, the Sep 26 high, confirming a resumption of the primary uptrend and maintaining the price sequence of higher highs and higher lows. A bearish theme in WTI futures remains intact and this week’s move lower reinforces this theme. A continuation down would expose $65.99, the Oct 1 low, and $64.16, the Sep 10 low and a key support.
  • A bearish theme in Bund futures remains intact and the contract is trading closer to its recent lows. Price has breached support at 132.58, the Oct 22 low. The break confirms a resumption of the downtrend that started early October and signals scope for a continuation near-term. A bear cycle in Gilt futures remains present and this week’s fresh short-term cycle lows reinforces current conditions. The contract has traded through key support at 95.83, the Oct 10 low.

FOREIGN EXCHANGE    

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Price Signal Summary – Bearish Gilt Theme Remains

  • S&P E-Minis continue to trade below their recent highs. However, recent S/T weakness is considered corrective and the uptrend remains intact. Price has recently traded through support at the 20-day EMA, at 5840.25, but is - for now - trading above this average once again. Eurostoxx 50 futures continue to trade within its recent range. For now, a bear threat still remains present. The contract traded sharply lower on Oct 15 and has pierced the 50-day EMA, at 4950.11. A clear break of this average would undermine a recent bullish theme.
  • The trend theme in GBPUSD remains bearish and short-term gains are considered corrective. The move down last week resulted in a breach of 1.2959, the 61.8% retracement of the Aug 8 - Sep 25 bull leg. The trend condition in USDJPY remains bullish and price continues to trade at the recent highs. The pair's latest gains have confirmed a resumption of the current uptrend. Price has traded through 153.40, the 61.8% retracement of the downleg posted off the July 3rd high. The USDCAD trend outlook remains bullish and the pair traded higher once again on Tuesday. Price has recently cleared 1.3822, 76.4% of the Aug 5 - Sep 25 bear leg. The breach reinforces a bullish theme and opens 1.3946.
  • The trend condition in Gold is unchanged and bulls remain in the driver’s seat. The latest climb has resulted in a breach of $2685.6, the Sep 26 high, confirming a resumption of the primary uptrend and maintaining the price sequence of higher highs and higher lows. A bearish theme in WTI futures remains intact and this week’s move lower reinforces this theme. A continuation down would expose $65.99, the Oct 1 low, and $64.16, the Sep 10 low and a key support.
  • A bearish theme in Bund futures remains intact and the contract is trading closer to its recent lows. Price has breached support at 132.58, the Oct 22 low. The break confirms a resumption of the downtrend that started early October and signals scope for a continuation near-term. A bear cycle in Gilt futures remains present and this week’s fresh short-term cycle lows reinforces current conditions. The contract has traded through key support at 95.83, the Oct 10 low.

FOREIGN EXCHANGE    

Keep reading...Show less