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MNI DAILY TECHNICAL ANALYSIS - Euro-US Equity Gap Widens Again

Story

Price Signal Summary – Euro-US Equity Gap Widens Further

  • Bullish conditions in S&P E-Minis remain intact and last week’s gains reinforce current conditions. A key short-term support has been defined at 5724.25, Nov 4 low. The latest rally resulted in a breach of the bull trigger at 5927.25, Oct 17 high, confirming a resumption of the primary uptrend. A bearish condition in Eurostoxx 50 futures remains intact and last week’s fresh cycle lows reinforce current conditions, having confirmed a resumption of the bear cycle. The contract has pierced 4815.50, the 50.0% retracement of the Aug 5 - Sep 30 bull cycle.
  • The trend condition in GBPUSD remains bearish. Today’s move lower has resulted in a print below key short-term support at 1.2834, the Nov 6 low. A clear break of this level would confirm a resumption of the downtrend and pave the way for an extension towards 1.2799 next. The USDJPY trend condition is unchanged and remains bullish with price trading closer to its recent highs. Resistance at 153.88, the Oct 28 high, has been breached, reinforcing a bullish condition. A bear cycle in AUDUSD remains intact and recent gains appear to have been a correction. Last Wednesday’s sell-off resulted in a breach of 0.6537, the Oct 30 low and bear trigger, highlighting a resumption of the downtrend. 
  • The trend condition in Gold is unchanged, it remains bullish and the latest pullback appears corrective. However, recent weakness has resulted in a breach of the 20-day EMA, and yesterday’s sell-off delivered a print below the 50-day EMA, at $2646.3. A bearish theme in WTI futures remains intact and Monday’s bearish start to the week reinforces current conditions. An extension lower would expose $65.99, the Oct 1 low, and $64.16, the Sep 10 low and key support.
  • Bund futures traded higher Monday and the contract remains above its recent lows. Gains are considered corrective. The trend direction is down and last Wednesday’s break to a fresh cycle low reinforces this theme. A bearish trend condition in Gilts remains intact and short-term gains are considered corrective. The contract has recently breached 92.99, a 2.00 projection of the Sep 17 - 30 - Oct 1 price swing.

FOREIGN EXCHANGE    

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Price Signal Summary – Euro-US Equity Gap Widens Further

  • Bullish conditions in S&P E-Minis remain intact and last week’s gains reinforce current conditions. A key short-term support has been defined at 5724.25, Nov 4 low. The latest rally resulted in a breach of the bull trigger at 5927.25, Oct 17 high, confirming a resumption of the primary uptrend. A bearish condition in Eurostoxx 50 futures remains intact and last week’s fresh cycle lows reinforce current conditions, having confirmed a resumption of the bear cycle. The contract has pierced 4815.50, the 50.0% retracement of the Aug 5 - Sep 30 bull cycle.
  • The trend condition in GBPUSD remains bearish. Today’s move lower has resulted in a print below key short-term support at 1.2834, the Nov 6 low. A clear break of this level would confirm a resumption of the downtrend and pave the way for an extension towards 1.2799 next. The USDJPY trend condition is unchanged and remains bullish with price trading closer to its recent highs. Resistance at 153.88, the Oct 28 high, has been breached, reinforcing a bullish condition. A bear cycle in AUDUSD remains intact and recent gains appear to have been a correction. Last Wednesday’s sell-off resulted in a breach of 0.6537, the Oct 30 low and bear trigger, highlighting a resumption of the downtrend. 
  • The trend condition in Gold is unchanged, it remains bullish and the latest pullback appears corrective. However, recent weakness has resulted in a breach of the 20-day EMA, and yesterday’s sell-off delivered a print below the 50-day EMA, at $2646.3. A bearish theme in WTI futures remains intact and Monday’s bearish start to the week reinforces current conditions. An extension lower would expose $65.99, the Oct 1 low, and $64.16, the Sep 10 low and key support.
  • Bund futures traded higher Monday and the contract remains above its recent lows. Gains are considered corrective. The trend direction is down and last Wednesday’s break to a fresh cycle low reinforces this theme. A bearish trend condition in Gilts remains intact and short-term gains are considered corrective. The contract has recently breached 92.99, a 2.00 projection of the Sep 17 - 30 - Oct 1 price swing.

FOREIGN EXCHANGE    

Keep reading...Show less