MNI BRIEF: China May Inject CNY1 Trln To Replenish Big Banks

MNI BRIEF: China Sees Progress On EU EV Deal

MNI: PBOC Net Drains CNY279.8 Bln via OMO Thursday

MNI: PBOC Sets Yuan Parity Lower At 7.1894 Thurs; -1.38% Y/Y

MNI BRIEF: Bank of Korea Cuts Policy Rate to 3.00%: Press

MNI: BANK OF KOREA CUTS RATE TO 3.00%: PRESS

EZ/UK Bond Supply Calendar: UK, Germany Auction on Tuesday

MNI: GERMANY NRW NOV CPI -0.3% M/M, +1.9% Y/Y

MNI: BAVARIA NOV CPI -0.2% M/M, +2.6% Y/Y

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

MNI EXCLUSIVE: German Turmoil Dashes EU's Joint-Funding Hopes -Officials

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

MNI DAILY TECHNICAL ANALYSIS - EUR Hammer Could Signal ST Base

Story

Price Signal Summary - EUR Hammer Could Signal Base

  • S&P E-Minis are trading at this week’s highs and sights are on the key resistance and bull trigger at 6053.25, the Nov 11 high. A break of this hurdle would resume the uptrend and open 6070.16, a Fibonacci projection. A bear trend in Eurostoxx 50 futures remains intact and short-term gains are considered corrective - for now. A fresh cycle low on Nov 19 marked a resumption of the downtrend that started Sep 30.
  • EURUSD traded higher Wednesday, marking an extension of the recovery from last week’s low. The Nov 22 price pattern - a hammer candle - highlights a possible short-term base and if correct, the start of a corrective cycle. EURGBP continues to trade inside a range. Attention is on a bullish engulfing candle pattern on Nov 12 that highlights a possible short-term reversal. The recovery from the Nov 22 low is also seen as a potential bullish development. A bearish theme in AUDUSD remains intact. The break to a fresh cycle low on Tuesday marks an extension of the current price sequence of lower lows and lower highs. Note too that moving average studies are in a bear-mode position.
  • The long-term trend condition in Gold is unchanged, it 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, highlighting a dominant uptrend. A bearish theme in WTI futures remains intact and Monday’s move lower reinforces this theme. Attention is on $65.74, the Oct 1 low, and $63.90, the Sep 10 low and key support. For bulls, a stronger reversal to the upside would instead refocus attention on the key short-term resistance at $77.04.
  • Bund futures traded higher Wednesday. Price has recently cleared the 20- and 50-day EMAs. This undermines a recent bearish theme and note that 133.39 has been breached, 50.0% of the Oct 1 - Nov 6 bear leg. The trend condition in Gilt futures remains bearish, however, a corrective cycle is in play and this week’s climb reinforces current bullish conditions. A continuation higher would pave the way for a climb towards 95.73 next, a Fibonacci projection.

FOREIGN EXCHANGE    

Keep reading...Show less
3233 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

Price Signal Summary - EUR Hammer Could Signal Base

  • S&P E-Minis are trading at this week’s highs and sights are on the key resistance and bull trigger at 6053.25, the Nov 11 high. A break of this hurdle would resume the uptrend and open 6070.16, a Fibonacci projection. A bear trend in Eurostoxx 50 futures remains intact and short-term gains are considered corrective - for now. A fresh cycle low on Nov 19 marked a resumption of the downtrend that started Sep 30.
  • EURUSD traded higher Wednesday, marking an extension of the recovery from last week’s low. The Nov 22 price pattern - a hammer candle - highlights a possible short-term base and if correct, the start of a corrective cycle. EURGBP continues to trade inside a range. Attention is on a bullish engulfing candle pattern on Nov 12 that highlights a possible short-term reversal. The recovery from the Nov 22 low is also seen as a potential bullish development. A bearish theme in AUDUSD remains intact. The break to a fresh cycle low on Tuesday marks an extension of the current price sequence of lower lows and lower highs. Note too that moving average studies are in a bear-mode position.
  • The long-term trend condition in Gold is unchanged, it 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, highlighting a dominant uptrend. A bearish theme in WTI futures remains intact and Monday’s move lower reinforces this theme. Attention is on $65.74, the Oct 1 low, and $63.90, the Sep 10 low and key support. For bulls, a stronger reversal to the upside would instead refocus attention on the key short-term resistance at $77.04.
  • Bund futures traded higher Wednesday. Price has recently cleared the 20- and 50-day EMAs. This undermines a recent bearish theme and note that 133.39 has been breached, 50.0% of the Oct 1 - Nov 6 bear leg. The trend condition in Gilt futures remains bearish, however, a corrective cycle is in play and this week’s climb reinforces current bullish conditions. A continuation higher would pave the way for a climb towards 95.73 next, a Fibonacci projection.

FOREIGN EXCHANGE    

Keep reading...Show less