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MNI DAILY TECHNICAL ANALYSIS - Bullish Equity Backdrop for NFP

MNI (LONDON) - Price Signal Summary – Bullish Equity Backdrop for NFP Week

  • A bullish theme S&P E-Minis remains intact and the contract is trading at its recent highs. A resumption of gains would pave the way for a climb towards key resistance and the bull trigger at 5721.25, the Jul 16 high. Eurostoxx 50 futures traded higher last week and the contract is holding on to its latest gains. The break higher means that all key retracement points of the Jul 12 - Aug 5 bear leg have been cleared.
  • Bullish conditions in GBPUSD remain intact and the latest pullback appears to be a correction. Recent gains reinforce a bullish condition and have maintained the positive price sequence of higher highs and higher lows. USDJPY traded higher last week but for now, remains below resistance at the the 20-day EMA, at 146.84. The trend structure is bearish and moving average studies are in a bear-mode set-up. A resumption of weakness activity would open key support at 141.70. USDCAD is unchanged and a bearish theme remains intact. The latest impulsive sell-off reinforces the current bearish condition and moving average studies are in a bear-mode set-up.
  • Trend conditions in Gold remain bullish with price trading closer to its recent highs. The breach of $2483.7, the Jul 17 high, confirmed a resumption of the primary uptrend. Note that MA studies are still in a bull-mode set-up and this highlights a dominant uptrend. WTI futures have pulled back from last week’s high and the contract is starting this week on a bearish note as it trades lower. A continuation down would expose the $70.88 key support, the Aug 5 low.
  • Bund futures continue to trade at their recent lows and remain below the 20-day EMA. Short-term weakness still appears to be corrective and this has allowed the recent overbought condition to unwind. Gilt futures remain in a short-term bear cycle and are trading lower today. The move down last week resulted in a breach of 98.79, Aug 12 low. The break highlights scope for a deeper retracement near-term that opens 98.19 next, a Fibonacci projection.

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MNI (LONDON) - Price Signal Summary – Bullish Equity Backdrop for NFP Week

  • A bullish theme S&P E-Minis remains intact and the contract is trading at its recent highs. A resumption of gains would pave the way for a climb towards key resistance and the bull trigger at 5721.25, the Jul 16 high. Eurostoxx 50 futures traded higher last week and the contract is holding on to its latest gains. The break higher means that all key retracement points of the Jul 12 - Aug 5 bear leg have been cleared.
  • Bullish conditions in GBPUSD remain intact and the latest pullback appears to be a correction. Recent gains reinforce a bullish condition and have maintained the positive price sequence of higher highs and higher lows. USDJPY traded higher last week but for now, remains below resistance at the the 20-day EMA, at 146.84. The trend structure is bearish and moving average studies are in a bear-mode set-up. A resumption of weakness activity would open key support at 141.70. USDCAD is unchanged and a bearish theme remains intact. The latest impulsive sell-off reinforces the current bearish condition and moving average studies are in a bear-mode set-up.
  • Trend conditions in Gold remain bullish with price trading closer to its recent highs. The breach of $2483.7, the Jul 17 high, confirmed a resumption of the primary uptrend. Note that MA studies are still in a bull-mode set-up and this highlights a dominant uptrend. WTI futures have pulled back from last week’s high and the contract is starting this week on a bearish note as it trades lower. A continuation down would expose the $70.88 key support, the Aug 5 low.
  • Bund futures continue to trade at their recent lows and remain below the 20-day EMA. Short-term weakness still appears to be corrective and this has allowed the recent overbought condition to unwind. Gilt futures remain in a short-term bear cycle and are trading lower today. The move down last week resulted in a breach of 98.79, Aug 12 low. The break highlights scope for a deeper retracement near-term that opens 98.19 next, a Fibonacci projection.

FOREIGN EXCHANGE

Keep reading...Show less