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MNI DAILY TECHNICAL ANALYSIS - Bearish Threat Builds for Bunds

Story

Price Signal Summary – Bearish Threat Builds for Bunds

  • The trend condition in S&P E-Minis is unchanged and signals remain bullish. Resistance at 5430.75, the May 23 high and bull trigger, has recently been cleared. This break confirmed a resumption of the primary uptrend. The trend condition in Eurostoxx 50 futures remains bullish. The recovery from the Jun 14 low appears to be an early reversal of the May 16 - Jun 14 correction. Attention is on 5039.84, a Fibonacci retracement.                               
  • EURUSD has started this week’s session on a firmer note. Note that the trend outlook is bearish and gains are considered corrective - for now. MA studies are in a bear-mode set-up highlighting a downtrend. Resistance to watch is 1.0772, the 50-day EMA. EURGBP has traded above last week’s high of 0.8478 (Jun 24). The climb signals scope for a stronger corrective cycle and the cross is approaching a firm resistance at 0.8503, the 50-day EMA. AUDUSD is unchanged and still trades inside a range that highlights two key levels; resistance at 0.6714, the May 16 high, and support at 0.6576, the Jun 10 low. Both levels represent important  short-term directional triggers.
  • A bear threat in Gold remains present and the yellow metal continues to trade closer to its recent lows. The sell-off on Jun 7 reinforced a short-term bearish theme. Price has pierced the 50-day EMA, at 2318.4. A bull cycle in WTI futures remains in play and the contract traded higher last week. The recent breach of $80.11, the May 29 high and a key resistance, strengthened a bullish theme. Note too that $82.24, 76.4% of the Apr 12 - Jun 4 bear leg, has been pierced.
  • Bund futures traded lower last week and have started this week’s session on a bearish note. The gap lower today undermines a recent bullish theme and signals scope for a deeper retracement. The next support to watch is 130.84, a Fibonacci retracement. A pullback in Gilt futures is considered corrective - for now. Moving average studies are in a bull-mode set-up and recent gains resulted in a print above 98.89, the May 16 high. A clear break of it would reinforce bullish conditions.

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Price Signal Summary – Bearish Threat Builds for Bunds

  • The trend condition in S&P E-Minis is unchanged and signals remain bullish. Resistance at 5430.75, the May 23 high and bull trigger, has recently been cleared. This break confirmed a resumption of the primary uptrend. The trend condition in Eurostoxx 50 futures remains bullish. The recovery from the Jun 14 low appears to be an early reversal of the May 16 - Jun 14 correction. Attention is on 5039.84, a Fibonacci retracement.                               
  • EURUSD has started this week’s session on a firmer note. Note that the trend outlook is bearish and gains are considered corrective - for now. MA studies are in a bear-mode set-up highlighting a downtrend. Resistance to watch is 1.0772, the 50-day EMA. EURGBP has traded above last week’s high of 0.8478 (Jun 24). The climb signals scope for a stronger corrective cycle and the cross is approaching a firm resistance at 0.8503, the 50-day EMA. AUDUSD is unchanged and still trades inside a range that highlights two key levels; resistance at 0.6714, the May 16 high, and support at 0.6576, the Jun 10 low. Both levels represent important  short-term directional triggers.
  • A bear threat in Gold remains present and the yellow metal continues to trade closer to its recent lows. The sell-off on Jun 7 reinforced a short-term bearish theme. Price has pierced the 50-day EMA, at 2318.4. A bull cycle in WTI futures remains in play and the contract traded higher last week. The recent breach of $80.11, the May 29 high and a key resistance, strengthened a bullish theme. Note too that $82.24, 76.4% of the Apr 12 - Jun 4 bear leg, has been pierced.
  • Bund futures traded lower last week and have started this week’s session on a bearish note. The gap lower today undermines a recent bullish theme and signals scope for a deeper retracement. The next support to watch is 130.84, a Fibonacci retracement. A pullback in Gilt futures is considered corrective - for now. Moving average studies are in a bull-mode set-up and recent gains resulted in a print above 98.89, the May 16 high. A clear break of it would reinforce bullish conditions.

FOREIGN EXCHANGE

Keep reading...Show less