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MNI DAILY TECHNICAL ANALYSIS - Eurostoxx Extends Bull Cycle

Price Signal Summary – Eurostoxx Marks Extension of Bull Cycle

  • A bullish theme S&P E-Minis remains intact and the contract is trading closer to its recent highs. A resumption of gains would pave the way for a climb towards key resistance and the bull trigger at 5721.25, the Jul 16 high. Eurostoxx 50 futures traded higher Thursday, marking an extension of the bull cycle that started Aug 5. The break higher means that all key retracement points of the Jul 12 - Aug 5 bear leg have been cleared.
  • Bullish conditions in GBPUSD remain intact and the latest shallow pullback is considered corrective. Recent gains reinforce a bullish condition and this maintains the positive price sequence of higher highs and higher lows. USDJPY is unchanged and continues to trade below the Aug 15 high and the 20-day EMA. The trend structure remains bearish and moving average studies are in a bear-mode set-up. A stronger reversal lower would open key support at 141.70, the Aug 5 low. A bull cycle in AUDUSD remains intact and the pair is holding on to its latest gains. The most recent move higher has resulted in a print above 0.6799, the Jul 11 / Aug 23 high and a bull trigger. A clear break of this hurdle would strengthen a bullish theme.
  • Trend conditions in Gold are unchanged and remain bullish. The recent breach of $2483.7, the Jul 17 high, confirmed a resumption of the primary uptrend. Note that moving average studies are still in a bull-mode set-up and this highlights a dominant uptrend. WTI futures have recovered this month from their early August lows. More recently, the contract traded sharply higher Monday before pulling back. A stronger resumption of gains would refocus attention on key resistance at $78.54, the Aug 12 high.
  • Bund futures are trading at their recent lows and just below the 20-day EMA. Short-term weakness still appears to be corrective and this is allowing the recent overbought condition to unwind. The next support to watch lies at 133.39, the 50-day EMA. Gilt futures traded lower again, Thursday. This week’s move lower has resulted in a breach of support at 98.79, the Aug 12 low. The break lower highlights scope for a deeper retracement near-term that opens 98.37, a Fibonacci projection.

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Price Signal Summary – Eurostoxx Marks Extension of Bull Cycle

  • A bullish theme S&P E-Minis remains intact and the contract is trading closer to its recent highs. A resumption of gains would pave the way for a climb towards key resistance and the bull trigger at 5721.25, the Jul 16 high. Eurostoxx 50 futures traded higher Thursday, marking an extension of the bull cycle that started Aug 5. The break higher means that all key retracement points of the Jul 12 - Aug 5 bear leg have been cleared.
  • Bullish conditions in GBPUSD remain intact and the latest shallow pullback is considered corrective. Recent gains reinforce a bullish condition and this maintains the positive price sequence of higher highs and higher lows. USDJPY is unchanged and continues to trade below the Aug 15 high and the 20-day EMA. The trend structure remains bearish and moving average studies are in a bear-mode set-up. A stronger reversal lower would open key support at 141.70, the Aug 5 low. A bull cycle in AUDUSD remains intact and the pair is holding on to its latest gains. The most recent move higher has resulted in a print above 0.6799, the Jul 11 / Aug 23 high and a bull trigger. A clear break of this hurdle would strengthen a bullish theme.
  • Trend conditions in Gold are unchanged and remain bullish. The recent breach of $2483.7, the Jul 17 high, confirmed a resumption of the primary uptrend. Note that moving average studies are still in a bull-mode set-up and this highlights a dominant uptrend. WTI futures have recovered this month from their early August lows. More recently, the contract traded sharply higher Monday before pulling back. A stronger resumption of gains would refocus attention on key resistance at $78.54, the Aug 12 high.
  • Bund futures are trading at their recent lows and just below the 20-day EMA. Short-term weakness still appears to be corrective and this is allowing the recent overbought condition to unwind. The next support to watch lies at 133.39, the 50-day EMA. Gilt futures traded lower again, Thursday. This week’s move lower has resulted in a breach of support at 98.79, the Aug 12 low. The break lower highlights scope for a deeper retracement near-term that opens 98.37, a Fibonacci projection.

FOREIGN EXCHANGE

Keep reading...Show less