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MNI DAILY TECHNICAL ANALYSIS - Gilts Through Support

Price Signal Summary – Gilts Through Support

  • A bull cycle in S&P E-Minis remains intact and the latest shallow pullback still appears to be a correction. Price is trading closer to its recent highs. MA studies are in a bull-mode setup, highlighting a dominant uptrend and positive market sentiment. Eurostoxx 50 futures finished Wednesday trade well, but next resistance remains out of reach for now at the September highs. Key short-term support to watch is 4935.12, the 50-day EMA. A clear break of this EMA would signal scope for a deeper retracement.
  • USDCAD traded higher Tuesday, confirming an extension of the bull cycle that started Sep 25. The move higher this week has resulted in a break of resistance at 1.3647, the Sep 19 high and a key resistance. EURJPY is holding on to its recent gains and remains above the 50-day EMA, at 161.67. Key short-term resistance is unchanged at 163.49, the Sep 27 high (pierced), and 163.89, the Aug 15 high. Clearance of both levels would highlight a potential reversal.GBPUSD maintains a softer short-term tone following last week’s sell-off, and the pair continues to trade at its lows. Cable has breached support at the 20-day EMA and pierced the 50-day EMA at 1.3110. A clear break of this average would strengthen a bearish threat and open 1.3049.
  • WTI futures traded higher Monday as the pair extended the rally that started Oct 1. Tuesday’s reversal is for now, considered corrective. Recent gains suggest potential for a continuation higher near-term. Attention is on $77.40, the 76.4% retracement of the Jul 5 - Sep 10 bear leg. The latest short-term retracement in Gold is considered corrective. The trend condition is unchanged and bulls remain in the driver’s seat. Moving average studies are in a bull-mode set-up too, highlighting a clear uptrend and positive market sentiment.
  • Bund futures continue to trade closer to their latest lows. Recent weakness has resulted in a move through both the 20- and 50-day EMAs and this undermines a recent bullish outlook. A continuation would further strengthen a developing bearish threat. A bear threat in Gilt futures remains present. The Oct 4 impulsive sell-off, and this week’s move lower, reinforces a bearish theme. The contract has traded through support at 98.11, the Sep 2 low and a bear trigger. The break strengthens the downtrend, signalling scope for a deeper retracement.

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Price Signal Summary – Gilts Through Support

  • A bull cycle in S&P E-Minis remains intact and the latest shallow pullback still appears to be a correction. Price is trading closer to its recent highs. MA studies are in a bull-mode setup, highlighting a dominant uptrend and positive market sentiment. Eurostoxx 50 futures finished Wednesday trade well, but next resistance remains out of reach for now at the September highs. Key short-term support to watch is 4935.12, the 50-day EMA. A clear break of this EMA would signal scope for a deeper retracement.
  • USDCAD traded higher Tuesday, confirming an extension of the bull cycle that started Sep 25. The move higher this week has resulted in a break of resistance at 1.3647, the Sep 19 high and a key resistance. EURJPY is holding on to its recent gains and remains above the 50-day EMA, at 161.67. Key short-term resistance is unchanged at 163.49, the Sep 27 high (pierced), and 163.89, the Aug 15 high. Clearance of both levels would highlight a potential reversal.GBPUSD maintains a softer short-term tone following last week’s sell-off, and the pair continues to trade at its lows. Cable has breached support at the 20-day EMA and pierced the 50-day EMA at 1.3110. A clear break of this average would strengthen a bearish threat and open 1.3049.
  • WTI futures traded higher Monday as the pair extended the rally that started Oct 1. Tuesday’s reversal is for now, considered corrective. Recent gains suggest potential for a continuation higher near-term. Attention is on $77.40, the 76.4% retracement of the Jul 5 - Sep 10 bear leg. The latest short-term retracement in Gold is considered corrective. The trend condition is unchanged and bulls remain in the driver’s seat. Moving average studies are in a bull-mode set-up too, highlighting a clear uptrend and positive market sentiment.
  • Bund futures continue to trade closer to their latest lows. Recent weakness has resulted in a move through both the 20- and 50-day EMAs and this undermines a recent bullish outlook. A continuation would further strengthen a developing bearish threat. A bear threat in Gilt futures remains present. The Oct 4 impulsive sell-off, and this week’s move lower, reinforces a bearish theme. The contract has traded through support at 98.11, the Sep 2 low and a bear trigger. The break strengthens the downtrend, signalling scope for a deeper retracement.

FOREIGN EXCHANGE    

Keep reading...Show less