MNI BRIEF: Inflation's Down, Not There Yet - Fed's Barkin

MNI BRIEF: Jobless Claims Stays Low, 2Q GDP Revised Higher

MNI China Daily Summary: Thursday, Aug 29

MNI BRIEF: PBOC Restarts CGB Trade After Nearly Two Decades

MNI BRIEF: China Discussing Placing Tariffs On Auto Imports

MNI: PBOC Net Drains CNY208.4 Bln via OMO Thursday

EZ/UK Bond Supply Calendar: UK, ESM Syndis; AS, DE Due Tuesday

US EIA:NAT GAS STORAGE +35 BCF TO 3,334 BCF AUG 23 WK

MNI: US NAR JUL PENDING HOME SALES INDEX 70.2 V 74.3 IN JUN

UK: Week Ahead

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

MNI DAILY TECHNICAL ANALYSIS - Gilt Weakness Breaches Support

Story

Price Signal Summary – Gilt Weakness Breaches Support

  • A bullish theme S&P E-Minis is intact and the contract traded to a fresh cycle high Monday. Price has recently cleared 5600.75, Aug 1 high, signalling scope for an extension towards key resistance and the bull trigger at 5721.25, the Jul 16 high. Eurostoxx 50 futures are holding on to their latest gains. The contract has recently pierced the 50-day EMA, at 4877.69. An extension higher would undermine the recent bearish theme and highlight a stronger reversal.
  • Bullish conditions in GBPUSD remain intact and the pair continues to trade closer to its recent highs. Price has recently traded through two important resistance points; 1.3142 and 1.3149, the Jul 14 ’23 high and the top of a bull channel drawn from the Oct 4 ‘23 low. USDJPY 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 trading at this week’s highs. This latest climb has resulted in a print above 0.6799, the Jul 11 / Aug 23 high and a bull trigger.
  • 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 from their recent lows and the contract traded sharply higher Monday. However, price has pulled back from its latest highs and again traded lower yesterday. A resumption of gains would refocus attention on key resistance at $78.54, the Aug 12 high.
  • Bund futures traded lower Tuesday resulting in a break of 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 133.37, the 50-day EMA.Gilt futures traded lower Tuesday and this 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
3183 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 Weakness Breaches Support

  • A bullish theme S&P E-Minis is intact and the contract traded to a fresh cycle high Monday. Price has recently cleared 5600.75, Aug 1 high, signalling scope for an extension towards key resistance and the bull trigger at 5721.25, the Jul 16 high. Eurostoxx 50 futures are holding on to their latest gains. The contract has recently pierced the 50-day EMA, at 4877.69. An extension higher would undermine the recent bearish theme and highlight a stronger reversal.
  • Bullish conditions in GBPUSD remain intact and the pair continues to trade closer to its recent highs. Price has recently traded through two important resistance points; 1.3142 and 1.3149, the Jul 14 ’23 high and the top of a bull channel drawn from the Oct 4 ‘23 low. USDJPY 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 trading at this week’s highs. This latest climb has resulted in a print above 0.6799, the Jul 11 / Aug 23 high and a bull trigger.
  • 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 from their recent lows and the contract traded sharply higher Monday. However, price has pulled back from its latest highs and again traded lower yesterday. A resumption of gains would refocus attention on key resistance at $78.54, the Aug 12 high.
  • Bund futures traded lower Tuesday resulting in a break of 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 133.37, the 50-day EMA.Gilt futures traded lower Tuesday and this 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