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MNI DAILY TECHNICAL ANALYSIS - Bund Dip Deemed Corrective

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Price Signal Summary – Bund Dip Deemed Corrective

  • The S&P E-Minis contract maintains a bullish tone and price is trading at its latest highs. Recent gains confirm a resumption of the uptrend and signal scope for a continuation near-term. Note that moving average studies are in a bull-mode set-up. Eurostoxx 50 futures traded higher last week and the contract is holding on to its latest gains. The move higher undermines a recent bearish theme. Price has traded through the 50-day EMA, at 4873.27.        
  • GBPUSD traded to a fresh short-term trend high on Friday before fading off highs. Recent gains are considered corrective and this has allowed an oversold trend condition to unwind. The pair has breached the 20-day EMA. A bear cycle remains USDJPY intact. The pair traded to a fresh short-term trend low on Dec 3, highlighting a resumption of the retracement of the Sep 16 - Nov 15 rally. Price has recently traded through the 20- and 50-day EMAs - a bearish development. The trend condition in USDCAD remains bullish and Friday’s strong rally reinforces this theme. The bull trigger is 1.4178, the Nov 26 high. A break of this hurdle would confirm a resumption of the primary uptrend and mark an extension of the bullish price sequence of higher highs and higher lows.
  • Gold is unchanged and continues to trade inside a tight range, for now. The long-term trend condition remains bullish and the Oct 31 - Nov 14 bear leg appears to have been a correction. Moving average studies are in a bull-mode position. A bearish threat in WTI futures remains present and recent weakness reinforces this theme. A continuation down would open $65.74, the Oct 1 low, and $63.90, the Sep 10 low and key support.
  • A bull cycle in Bund futures remains in play and the latest move lower is considered corrective. A move down is allowing an overbought trend condition to unwind. For bulls, price has recently traded through 136.37, the 76.4% retracement of the Oct 1 - Nov 6 bear leg. A bullish corrective cycle in Gilt futures remains in play and recent gains reinforce the current short-term condition. Sights are on 96.67 next, a Fibonacci projection point. On the downside, a stronger reversal lower would refocus attention on the initial key support at 93.40. 

FOREIGN EXCHANGE    

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Price Signal Summary – Bund Dip Deemed Corrective

  • The S&P E-Minis contract maintains a bullish tone and price is trading at its latest highs. Recent gains confirm a resumption of the uptrend and signal scope for a continuation near-term. Note that moving average studies are in a bull-mode set-up. Eurostoxx 50 futures traded higher last week and the contract is holding on to its latest gains. The move higher undermines a recent bearish theme. Price has traded through the 50-day EMA, at 4873.27.        
  • GBPUSD traded to a fresh short-term trend high on Friday before fading off highs. Recent gains are considered corrective and this has allowed an oversold trend condition to unwind. The pair has breached the 20-day EMA. A bear cycle remains USDJPY intact. The pair traded to a fresh short-term trend low on Dec 3, highlighting a resumption of the retracement of the Sep 16 - Nov 15 rally. Price has recently traded through the 20- and 50-day EMAs - a bearish development. The trend condition in USDCAD remains bullish and Friday’s strong rally reinforces this theme. The bull trigger is 1.4178, the Nov 26 high. A break of this hurdle would confirm a resumption of the primary uptrend and mark an extension of the bullish price sequence of higher highs and higher lows.
  • Gold is unchanged and continues to trade inside a tight range, for now. The long-term trend condition remains bullish and the Oct 31 - Nov 14 bear leg appears to have been a correction. Moving average studies are in a bull-mode position. A bearish threat in WTI futures remains present and recent weakness reinforces this theme. A continuation down would open $65.74, the Oct 1 low, and $63.90, the Sep 10 low and key support.
  • A bull cycle in Bund futures remains in play and the latest move lower is considered corrective. A move down is allowing an overbought trend condition to unwind. For bulls, price has recently traded through 136.37, the 76.4% retracement of the Oct 1 - Nov 6 bear leg. A bullish corrective cycle in Gilt futures remains in play and recent gains reinforce the current short-term condition. Sights are on 96.67 next, a Fibonacci projection point. On the downside, a stronger reversal lower would refocus attention on the initial key support at 93.40. 

FOREIGN EXCHANGE    

Keep reading...Show less