MNI DAILY TECHNICAL ANALYSIS - EUROSTOXX 50 Pierces Resistance

Price Signal Summary - EUROSTOXX 50 Pierces Resistance At The 50-Day EMA       

• In the equity space, last week’s recovery in S&P E-Minis, highlights a bullish reversal and the end of the Sep 3 - 6 corrective cycle. A continuation higher would open 5730.50, the Sep 3 high. Clearance of this level would expose 5785.00, the Jul 16 high and bull trigger. First support is 5583.10, the 50-day EMA. EUROSTOXX 50 futures are holding on to their recent gains. Despite the latest recovery, a bear threat is still present. A resumption of the bear leg would signal scope for weakness towards 4686.53, 61.8% of the Aug 5 - Sep 3 bull cycle. First resistance is at 4863.45, the 50-day EMA. This EMA has today been pierced, a clear break of it would strengthen a bullish condition. The next resistance is 4895.24, 61.8% off the Sep 3 - Sep 10 bear leg.                                                                                                        
• In FX, EURUSD started the week on a firmer note, trading through last Friday’s high, marking an extension of the recovery that started Sep 11. The break higher exposes a key resistance at 1.1155, the Sep 6 high. Clearance of this level would cancel a recent bearish theme and open 1.1202, the Aug 26 high and a bull trigger. For bears, a reversal lower would refocus attention on 1.1002, the Sep 11 low and key support. GBPUSD bounced off last week’s lows and the pair traded higher Monday, extending the latest recovery. A continuation higher would refocus attention on key short-term resistance and bull trigger at 1.3266, the Aug 27 high. For bears, a resumption of the downleg would signal scope for a deeper retracement, towards the 50-day EMA, at 1.2986. USDJPY bears remain in the driver’s seat and the pair once again traded to a fresh cycle low, Monday. The move down last week resulted in a break of key support and the bear trigger at 141.70, the Aug 5 low. This confirms a resumption of the downtrend. Sights are on 139.00 next, 1.382 projection of the Aug 15 - 26 - Sep 3 price swing. Firm resistance is at 143.95, 20-day EMA.          
• On the commodity front, a bullish structure in Gold remains intact and the metal traded, once again, to a fresh all-time high, yesterday. Last week’s gains confirmed a resumption of the primary uptrend and marked the end of the recent period of consolidation - a pause in the uptrend. The focus is on $2600.0 next. Firm support lies at $2515.5, the 20-day EMA. In the oil space, WTI futures are holding on to their latest gains. The move higher that started Sep 9, appears to be a correction. Recent weakness reinforced a bearish condition and note that moving average studies are in a bear-mode set-up, highlighting a dominant downtrend. A resumption of the downtrend would open $63.93 next, 1.618 projection of the Apr 12 - Jun 4 - Jul 5 price swing. Initial firm resistance to watch is at $70.97, the 20-day EMA.                                                                                                                                                                                                   
• In the FI space, Bund futures continue to trade closer to their recent highs. The contract has breached 134.95, 76.4% of the Aug 5 - Sep 2 bear leg, exposing the key resistance and bull trigger at 135.66, the Aug 5 high. Clearance of this level would strengthen a bullish theme. The 20-day EMA marks the Initial firm support, at 134.23. Gilt futures are holding on to their recent gains. The contract traded higher last week and a bull cycle is still in play. The latest round of gains have resulted in a break of 100.30, the Aug 14 high. This resumes the uptrend. 101.78 marks the next objective, a 1.00 projection of the Sep 2 - 6 - 9 price swing. Initial support is 100.64, the Sep 10 high.

FOREIGN EXCHANGE