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MNI DAILY TECHNICAL ANALYSIS - EUR Reinforces Negative Bias

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Price Signal Summary – EUR Selloff Reinforces Negative Bias

  • A bear threat in the S&P E-Minis contract remains present and the latest move down highlights the end of the recent Dec 20 - 26 corrective bounce. Attention is on 5866.00, the Dec 20 low and a key short-term support.  A bull cycle in the Eurostoxx 50 futures contract remains intact, however, the recent move down highlights a corrective phase. Despite the latest bounce, a short-term bear threat remains present - for now.
  • The trend condition in EURUSD remains bearish and Thursday’s sharp sell-off reinforces current conditions. The break lower confirms a resumption of the downtrend that started late September last year. Note too that moving average studies remain in a bear-mode position. The sharp sell-off in GBPUSD on Thursday confirms a resumption of the medium-term downtrend. The move lower maintains the bearish price sequence of lower lows and lower highs, highlighting a clear downtrend. A bearish trend condition in AUDUSD remains intact and the pair continues to trade closer to latest lows. Recent weakness maintains the price sequence of lower lows and lower highs. Note that moving average studies are in a bear-mode position too.
  • Despite the latest recovery, a bear threat in Gold remains present. The yellow metal traded sharply lower on Dec 18 and the move undermines a recent bull theme. A resumption of weakness would open key support at $2536.9, the Nov 14 low. WTI futures have traded higher this week as the contract extends recent gains. A stronger reversal to the upside has exposed key short-term resistance at $76.41, the Oct 8 high. Initial firm resistance at $71.97, the Nov 7 high, was breached yesterday.
  • The trend cycle in Bund futures remains bearish and short-term gains are considered corrective. The Dec 27 sharp sell-off reinforces current conditions. The contract has traded through 133.22, 76.4% of the Nov 6 - Dec 2 bull cycle. A strong bearish theme in Gilt futures remains in play and short-term gains are considered corrective - for now. The recent breach of 91.87, the Dec 19 low, confirms a resumption of the downtrend.

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image

Price Signal Summary – EUR Selloff Reinforces Negative Bias

  • A bear threat in the S&P E-Minis contract remains present and the latest move down highlights the end of the recent Dec 20 - 26 corrective bounce. Attention is on 5866.00, the Dec 20 low and a key short-term support.  A bull cycle in the Eurostoxx 50 futures contract remains intact, however, the recent move down highlights a corrective phase. Despite the latest bounce, a short-term bear threat remains present - for now.
  • The trend condition in EURUSD remains bearish and Thursday’s sharp sell-off reinforces current conditions. The break lower confirms a resumption of the downtrend that started late September last year. Note too that moving average studies remain in a bear-mode position. The sharp sell-off in GBPUSD on Thursday confirms a resumption of the medium-term downtrend. The move lower maintains the bearish price sequence of lower lows and lower highs, highlighting a clear downtrend. A bearish trend condition in AUDUSD remains intact and the pair continues to trade closer to latest lows. Recent weakness maintains the price sequence of lower lows and lower highs. Note that moving average studies are in a bear-mode position too.
  • Despite the latest recovery, a bear threat in Gold remains present. The yellow metal traded sharply lower on Dec 18 and the move undermines a recent bull theme. A resumption of weakness would open key support at $2536.9, the Nov 14 low. WTI futures have traded higher this week as the contract extends recent gains. A stronger reversal to the upside has exposed key short-term resistance at $76.41, the Oct 8 high. Initial firm resistance at $71.97, the Nov 7 high, was breached yesterday.
  • The trend cycle in Bund futures remains bearish and short-term gains are considered corrective. The Dec 27 sharp sell-off reinforces current conditions. The contract has traded through 133.22, 76.4% of the Nov 6 - Dec 2 bull cycle. A strong bearish theme in Gilt futures remains in play and short-term gains are considered corrective - for now. The recent breach of 91.87, the Dec 19 low, confirms a resumption of the downtrend.

FOREIGN EXCHANGE    

Keep reading...Show less