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MNI DAILY TECHNICAL ANALYSIS - Bullish S&P Phase Concludes

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Price Signal Summary – Bullish S&P Phase Concludes

  • Monday’s initial sell-off in the S&P E-Minis contract and breach of support at 5948.00, the Jan 27 low, strengthens a bearish threat and cancels - for now - a recent bullish theme. An extension down would open 5892.37, a Fibonacci retracement point. Eurostoxx 50 futures have recovered from Monday’s low. However, the sharp reversal lower earlier this week signals the end of the recent bull run - for now - and the start of a corrective cycle.
  • Resistance in GBPUSD remains intact and the recent pullback highlights a potential bearish threat. The move down signals the end of the Jan 13 - 27 correction and note that 1.2503, the 50-day EMA, remains intact. USDJPY is trading lower today and this has resulted in a break of short-term support at 153.72, the Jan 27 low. The move marks an extension of the bear cycle that started Jan 10 and clears the way for 152.55 next, a Fibonacci retracement.AUDUSD continues to recover from Monday’s low. Despite these gains, the trend structure remains bearish. Monday’s cycle low confirmed a continuation of the downtrend and maintains the price sequence of lower lows and lower highs.   
  • A bull cycle in Gold remains in play. Last week’s extension higher and this week’s appreciation, confirms a resumption of the uptrend and maintains the bullish price sequence of higher highs and higher lows. Last week’s move down in WTI futures marked an extension of the current corrective cycle. The 20-day EMA has been breached and attention is on support around the 50-day EMA, at $72.30 (pierced).
  • Bund futures traded higher Monday and the contract is holding on to the bulk of its recent gains. Price has cleared resistance at 132.22, the Jan 22 high, and is through both the 20- and 50-day EMAs. The break higher confirms a resumption of the corrective bull cycle that started Jan 14. A bullish corrective phase in Gilt futures remains in play, signalling scope for a continuation higher near-term. Last week’s high print and Monday’s climb, reinforce current conditions.

FOREIGN EXCHANGE    

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Price Signal Summary – Bullish S&P Phase Concludes

  • Monday’s initial sell-off in the S&P E-Minis contract and breach of support at 5948.00, the Jan 27 low, strengthens a bearish threat and cancels - for now - a recent bullish theme. An extension down would open 5892.37, a Fibonacci retracement point. Eurostoxx 50 futures have recovered from Monday’s low. However, the sharp reversal lower earlier this week signals the end of the recent bull run - for now - and the start of a corrective cycle.
  • Resistance in GBPUSD remains intact and the recent pullback highlights a potential bearish threat. The move down signals the end of the Jan 13 - 27 correction and note that 1.2503, the 50-day EMA, remains intact. USDJPY is trading lower today and this has resulted in a break of short-term support at 153.72, the Jan 27 low. The move marks an extension of the bear cycle that started Jan 10 and clears the way for 152.55 next, a Fibonacci retracement.AUDUSD continues to recover from Monday’s low. Despite these gains, the trend structure remains bearish. Monday’s cycle low confirmed a continuation of the downtrend and maintains the price sequence of lower lows and lower highs.   
  • A bull cycle in Gold remains in play. Last week’s extension higher and this week’s appreciation, confirms a resumption of the uptrend and maintains the bullish price sequence of higher highs and higher lows. Last week’s move down in WTI futures marked an extension of the current corrective cycle. The 20-day EMA has been breached and attention is on support around the 50-day EMA, at $72.30 (pierced).
  • Bund futures traded higher Monday and the contract is holding on to the bulk of its recent gains. Price has cleared resistance at 132.22, the Jan 22 high, and is through both the 20- and 50-day EMAs. The break higher confirms a resumption of the corrective bull cycle that started Jan 14. A bullish corrective phase in Gilt futures remains in play, signalling scope for a continuation higher near-term. Last week’s high print and Monday’s climb, reinforce current conditions.

FOREIGN EXCHANGE    

Keep reading...Show less