Free Trial

MNI DAILY TECHNICAL ANALYSIS - Gilt Rally Deemed Corrective

Price Signal Summary – Gilt Rally Deemed Corrective

  • S&P E-Minis trend conditions are unchanged and the outlook remains bullish. Recent gains confirm a resumption of the primary uptrend and maintain the bullish price sequence of higher highs and higher lows. Eurostoxx 50 futures traded sharply lower Tuesday, reversing recent gains. The contract has pierced support around the 50-day EMA, at 4944.00. A clear break of this average would undermine a recent bullish theme and highlight a stronger reversal.
  • GBPUSD traded sharply lower Wednesday and remains soft. The break lower confirms a resumption of the current bear cycle. Note that an important support at 1.3002, the Sep 11 low, has been breached. USDJPY maintains a firmer tone and the pair is holding on to its recent gains. The recent break of the break of the 50-day EMA, marks a bullish development that undermines a bearish theme and highlights a stronger reversal.AUDUSD has traded lower this week and the pair maintains a softer tone. Price has recently traded through both the 20- and 50-day EMAs. The move down undermines a bullish theme and exposes 0.6622, the Sep 11 low and a key support.
  • Gold is trading higher this week and the recent short-term retracement appears to have been a correction. The trend condition is unchanged and remains bullish. Moving average studies are in a bull-mode set-up too, highlighting a clear uptrend. WTI futures gapped lower Tuesday and this resulted in a break of the Oct 9 low. A bearish extension would threaten the recent bullish theme and expose support at $66.33, the Oct 1 low, and $64.61, the Sep 10 low and a key support.
  • A bearish theme in Bund futures remains intact and gains are for now, considered corrective. However, the contract has breached the 20- and 50-day EMAs. A continuation higher would be a bullish development and highlight a possible reversal. A bear cycle in Gilt futures remains present and the latest recovery is considered corrective - for now. Note that short-term gains are allowing an oversold trend condition to unwind. The contract is approaching resistance at 98.11, the Sep 2 low.

FOREIGN EXCHANGE    

Keep reading...Show less
3252 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 – Gilt Rally Deemed Corrective

  • S&P E-Minis trend conditions are unchanged and the outlook remains bullish. Recent gains confirm a resumption of the primary uptrend and maintain the bullish price sequence of higher highs and higher lows. Eurostoxx 50 futures traded sharply lower Tuesday, reversing recent gains. The contract has pierced support around the 50-day EMA, at 4944.00. A clear break of this average would undermine a recent bullish theme and highlight a stronger reversal.
  • GBPUSD traded sharply lower Wednesday and remains soft. The break lower confirms a resumption of the current bear cycle. Note that an important support at 1.3002, the Sep 11 low, has been breached. USDJPY maintains a firmer tone and the pair is holding on to its recent gains. The recent break of the break of the 50-day EMA, marks a bullish development that undermines a bearish theme and highlights a stronger reversal.AUDUSD has traded lower this week and the pair maintains a softer tone. Price has recently traded through both the 20- and 50-day EMAs. The move down undermines a bullish theme and exposes 0.6622, the Sep 11 low and a key support.
  • Gold is trading higher this week and the recent short-term retracement appears to have been a correction. The trend condition is unchanged and remains bullish. Moving average studies are in a bull-mode set-up too, highlighting a clear uptrend. WTI futures gapped lower Tuesday and this resulted in a break of the Oct 9 low. A bearish extension would threaten the recent bullish theme and expose support at $66.33, the Oct 1 low, and $64.61, the Sep 10 low and a key support.
  • A bearish theme in Bund futures remains intact and gains are for now, considered corrective. However, the contract has breached the 20- and 50-day EMAs. A continuation higher would be a bullish development and highlight a possible reversal. A bear cycle in Gilt futures remains present and the latest recovery is considered corrective - for now. Note that short-term gains are allowing an oversold trend condition to unwind. The contract is approaching resistance at 98.11, the Sep 2 low.

FOREIGN EXCHANGE    

Keep reading...Show less