MNI DAILY TECHNICAL ANALYSIS - Resumption of Gold Bull Cycle Would Open Late Dec Highs

Price Signal Summary – Resumption of Gold bull cycle would open late Dec highs

• The trend condition in S&P E-Minis is unchanged and remains bullish - yesterday’s gains reinforce current conditions. The contract has traded to a fresh cycle high, confirming a resumption of the uptrend. Recent corrections have been shallow. Eurostoxx 50 futures traded higher yesterday and again delivered fresh cycle highs, confirming a resumption of the current uptrend. This reinforces the bullish importance of the recent break of a key resistance at the Dec 14 high of 4634.00.
• Short-term gains in GBPUSD are considered corrective and a bearish condition remains intact. The recent sell-off resulted in a clear break of support at 1.2597, the Jan 17 low and the base of a recent range. The USDJPY trend outlook remains bullish and price is trading closer to its recent highs. Key resistance at 148.80, the Jan 19 high, has been pierced. A clear break of this hurdle would confirm a resumption of the uptrend that started late December. USDCAD has pulled back from its recent highs. Attention remains on key short-term resistance at 1.3542, the Jan 17 high. For bulls, a clear break of this hurdle would confirm a resumption of the uptrend that started Dec 27.
• WTI futures remain soft following last week’s steep sell-off and short-term gains are considered corrective. A resumption of weakness would expose support at $70.62, the Jan 17 low, and $69.56, the Jan 3 low. Gold is unchanged and the metal continues to trade above the Jan 17 low of $2001.9. Recent short-term gains improved a bullish condition and a resumption of the bull cycle would signal scope for a climb towards $2088.5.
• Bund futures remain in a bearish mode following the recent sell-off. A continuation lower would further undermine a recent bullish theme and expose key short-term support at 133.55, the Jan 25 low. A bear threat in Gilt futures remains present. The latest move lower has defined a key short-term resistance at 100.62, the Feb 1 high. Clearance of this level is required to reinstate the recent bullish theme and this would open 100.76, 50.0% of the Dec 27 - Jan 25 bear leg.

EURUSD TECHS: Gains Considered Corrective

• RES 4: 1.1077 76.4% retracement of the Dec 28 - Jan 5 sell-off
• RES 3: 1.1046 High Jan 2
• RES 2: 1.0932/98 High Jan 24 / 5 and a reversal trigger
• RES 1: 1.0845/98 20-day EMA / High Feb 02
• PRICE: 1.0782 @ 05:32 GMT Feb 8
• SUP 1: 1.0724/23 Low Dec 8 / Low Feb 5 and 6
• SUP 2: 1.0712 61.8% retracement of the Oct - Dec bull leg
• SUP 3: 1.0656 Low Nov 10
• SUP 4: 1.0611 76.4% retracement of the Oct - Dec bull leg

EURUSD maintains a bearish theme and the pair continues to trade just above its recent lows. Gains are considered corrective. The recent sell-off confirmed a resumption of the downtrend and maintains the bearish sequence of lower lows and lower highs. Sights are on 1.0724, the Dec 8 low, and 1.0712, a Fibonacci retracement. Clearance of this support zone would strengthen the bearish theme. Key resistance is 1.0932, the Jan 24 high.

GBPUSD TECHS: S/T Conditions Remain Bearish Despite A Bounce

• RES 4: 1.2881 76.4% retracement of the Jul 14 - Oct 4 bear leg
• RES 3: 1.2827 High Dec 28 and the bull trigger
• RES 2: 1.2669/2775 20-day EMA / High Jan 24
• RES 1: 1.2642 50-day EMA
• PRICE: 1.2630 @ 05:46 GMT Feb 8
• SUP 1: 1.2519 Low Feb 5
• SUP 2: 1.2500 Low Dec 13
• SUP 3: 1.2432 50.0% retracement of the Oct 4 - Dec 28 bull phase
• SUP 4: 1.2374 Low Nov 17

Short-term gains in GBPUSD are considered corrective and a bearish condition remains intact. The recent sell-off resulted in a clear break of support at 1.2597, the Jan 17 low and the base of a recent range. The clear range breakout strengthens a bearish condition and opens 1.2500, the Dec 13 low. Initial firm resistance is at 1.2669, the 20-day EMA. Key resistance is unchanged at 1.2827, the Dec 28 high.

EURGBP TECHS: Moving Average Studies Highlight A Downtrend

• RES 4: 0.8715 High Dec 28 and the bull trigger
• RES 3: 0.8676 High Jan 3
• RES 2: 0.8620 High Jan 20
• RES 1: 0.8572/8594 High Feb 5 and 6 / 50-day EMA
• PRICE: 0.8537 @ 06:05 GMT Feb 8
• SUP 1: 0.8513 Low Jan 29 and the bear trigger
• SUP 2: 0.8493 Low Aug 23 2023 and a key medium-term support
• SUP 3: 0.8454 61.8% of the Mar 7 - Sep 26 ‘23 bull phase
• SUP 4: 0.8388 Low Aug 17 2023

A bearish theme in EURGBP remains intact and the pullback from Monday’s high reinforces this condition. Moving average studies are in a bear-mode position, highlighting a dominant downtrend. The break in January of support at 0.8549, the Dec 11 low, strengthened current conditions and sights are on 0.8493, the Aug 23 ‘23 low and a key support. The 50-day EMA - at 0.8594 - is the firm resistance to watch. A clear break of it would concern bears.

USDJPY TECHS: Trading Closer To Its Recent Highs

• RES 4: 150.78 High Nov 17
• RES 3: 149.75 High Nov 22
• RES 2: 149.16 76.4% retracement of the Nov 13 - Dec 28 bull leg
• RES 1: 148.89 High Feb 05
• PRICE: 148.63 @ 06:18 GMT Feb 8
• SUP 1: 147.18/145.90 20-day EMA / Low Feb 1 and key support
• SUP 2: 145.59 Low Jan 16
• SUP 3: 144.36 Low Jan 12
• SUP 4: 143.42 Low Jan 9

The USDJPY trend outlook remains bullish and price is trading closer to its recent highs. Key resistance at 148.80, the Jan 19 high, has been pierced. A clear break of this hurdle would confirm a resumption of the uptrend that started late December. This would open 149.16, a Fibonacci retracement point, and signal scope for a climb towards 149.75, the Nov 22 high. Key short-term is unchanged at 145.90, the Feb 1 low.

EURJPY TECHS: Key Support Remains Intact

• RES 4: 163.72 High Nov 27
• RES 3: 162.25 High Nov 29
• RES 2: 161.86 High Jan 19 and the bull trigger
• RES 1: 160.97 High Jan 25
• PRICE: 160.32 @ 06:35 GMT Feb 8
• SUP 1: 158.92/08 Low Feb 7 / 1 and a key near-term support
• SUP 2: 157.21 Low Jan 9
• SUP 3: 156.08 Low Jan 4
• SUP 4: 155.08 Low Jan 2

EURJPY is trading higher today. Key short-term support has been defined at 158.08, the Feb 1 low. A clear break of this level would resume bearish pressure and open 157.21, the Jan 9 low. This would signal an extension of a corrective cycle. For bulls, a stronger reversal would refocus attention on 161.86, the Jan 19 high and bull trigger. Clearance of this level would reinstate the recent bullish theme.

AUDUSD TECHS: Trend Needle Points South

• RES 4: 0.6900 High Jun 16 and a key resistance
• RES 3: 0.6871 High Dec 28 and the bull trigger
• RES 2: 0.6729/71 High Jan 12 / 3
• RES 1: 0.6582/6625 20-day EMA / High Jan 30 and key resistance
• PRICE: 0.6522 @ 06:56 GMT Feb 8
• SUP 1: 0.6469 Low Feb 05
• SUP 2: 0.6453 Low Nov 17
• SUP 3: 0.6412 76.4% Fibonacci retracement for Oct - Dec upleg
• SUP 4: 0.6360 Low Nov 14

A bearish theme in AUDUSD remains intact and recent short-term gains are considered corrective. The latest break to fresh cycle lows confirmed a resumption of the downtrend and signals scope for weakness towards 0.6453, the Nov 17 low. Moving average studies are crossing into a bear-mode set-up, strengthening a bearish theme. Key short-term resistance to watch is unchanged at 0.6625, the Jan 30 high.

USDCAD TECHS: Resistance Remains Intact For Now

• RES 4: 1.3661 High Nov 27
• RES 3: 1.3623 61.8% retracement of the Nov 1 - Dec 27 bear leg
• RES 2: 1.3608 High Dec 13
• RES 1: 1.3542/44 High Jan 17 / Feb 5 and 6 and bull trigger
• PRICE: 1.3450 @ 07:18 GMT Feb 8
• SUP 1: 1.3447/3359 20-day EMA / Low Jan 31 and key S/T support
• SUP 2: 1.3343 Low Jan 12
• SUP 3: 1.3288 Low Jan 5
• SUP 4: 1.3229 Low Feb 1

USDCAD has pulled back from its recent highs. Attention remains on key short-term resistance at 1.3542, the Jan 17 high. For bulls, a clear break of this hurdle would confirm a resumption of the uptrend that started Dec 27 and open 1.3623, 61.8% of the Nov 1 - Dec 27 bear leg. Key support to watch lies at 1.3359, the Jan 31 low. Clearance of this level would instead highlight a bearish development. First support lies at 1.3447, the 20-day EMA.

FIXED INCOME

BUND TECHS: (H4) Support Remains Exposed

• RES 4: 137.96 High Jan 4
• RES 3: 137.59 76.4% retracement of the Dec 27 - Jan 25 bear leg
• RES 2: 136.82 61.8% retracement of the Dec 27 - Jan 25 bear leg
• RES 1: 134.84/136.29 20-day EMA / High Feb 1 and the bull trigger
• PRICE: 134.06 @ 05:07 GMT Feb 8
• SUP 1: 133.76 Low Feb 6
• SUP 2: 133.55 Low 25 and the bear trigger
• SUP 3: 132.89 50.0% retracement of the Oct 4 - Dec 27 bull phase
• SUP 4: 132.29 Low Nov 29

Bund futures remain in a bearish mode following the recent sell-off. A continuation lower would further undermine a recent bullish theme and expose key short-term support at 133.55, the Jan 25 low. Clearance of this level would strengthen a bearish threat. For bulls, clearance of last week’s high at 136.29 (Feb 1), is required to reinstate the recent bullish theme. Initial resistance is at 134.84, the 20-day EMA.

BOBL TECHS: (H4) Remains Vulnerable

• RES 4: 119.228 76.4% retracement of the Dec 27 - Jan 25 bear leg
• RES 3: 119.000 Round number resistance
• RES 2: 118.856 61.8% retracement of the Dec 27 - Jan 25 bear leg
• RES 1: 117.917/118.660 20-day EMA / High Jan 31
• PRICE: 117400 @ 05:11 GMT Feb 8
• SUP 1: 117.280 Low Jan 25 and bear trigger
• SUP 2: 117.060 Low Dec 1
• SUP 3: 117.000 Round number support
• SUP 4: 116.830 Low Nov 29

A bearish cycle in Bobl futures remains intact and the contract is trading at its recent lows. The recent move lower has exposed key support and a bear trigger at 117.280, the Jan 25 low. Clearance of this level would confirm a resumption of the bear cycle that started Dec 27. On the upside, key short-term resistance has been defined at 118.660, the Jan 31 high. A break would be a bullish development.

SCHATZ TECHS: (H4) Clears Key Support

• RES 4: 106.432 76.4% retracement of the Dec 29 - Jan 25 bear leg
• RES 3: 106.304 61.8% retracement of the Dec 29 - Jan 25 bear leg
• RES 2: 106.270 High Jan 5 and key short-term resistance
• RES 1: 105.972 20-day EMA / High Jan 31 and key resistance
• PRICE: 105.720 @ 05:19 GMT Feb 8
• SUP 1: 105.685 Low Nov 30
• SUP 2: 105.660 High Nov 17
• SUP 3: 105.470 Low Nov 28
• SUP 4: 105.260 Low Nov 24 and a key support

A downtrend in Schatz futures remains intact and this week’s move lower, reinforces this condition. The contract has breached support at 105.760, the Jan 25 low and bear trigger. The clear break of the support confirms a resumption of the bear cycle that started Dec 29 and maintains the price sequence of lower lows and lower highs. The focus is on 105.660, the Nov 16 high. Key resistance has been defined at 106.215.

GILT TECHS: (H4) Bear Threat Remains Present

• RES 4: 101.51 61.8% retracement of the Dec 27 - Jan 25 bear leg
• RES 3: 101.98 High Jan 3
• RES 2: 100.76 50.0% retracement of the Dec 27 - Jan 25 bear leg
• RES 1: 99.17/100.62 20-day EMA / High Feb 1 and key resistance
• PRICE: 98.58 @ Close Feb 7
• SUP 1: 97.57 Low Jan 25 and the bear trigger
• SUP 2: 97.39 Low Dec 11 and a key support
• SUP 3: 96.67 Low Dec 5
• SUP 4: 96.10 Low Nov 30

A bear threat in Gilt futures remains present. The latest move lower has defined a key short-term resistance at 100.62, the Feb 1 high. Clearance of this level is required to reinstate the recent bullish theme and this would open 100.76, 50.0% of the Dec 27 - Jan 25 bear leg. Attention is on key support and the bear trigger at 97.57, the Jan 25 low. A break of this level would confirm a resumption of the downtrend.

BTP TECHS: (H4) Watching Support

• RES 4: 122.63 High Dec 7 2022 (cont)
• RES 3: 122.18 3.00 proj of the Nov 10 - 17 - 24 price swing
• RES 2: 121.43 2.764 proj of the Nov 10 - 17 - 24 price swing
• RES 1: 119.27/77 High Jan 30 / 4
• PRICE: 117.73 @ Close Feb 7
• SUP 1: 116.98 Low Jan 25 and the bear trigger
• SUP 2: 115.70 Low Dec 8
• SUP 3: 114.10 50.0% retracement of the Oct 19 - Dec 27 bull cycle
• SUP 4: 113.31 Low Nov 28

BTP futures are unchanged and continue to trade below the Jan 30 high of 119.27. The contract has recently pierced resistance at the Jan 12 high of 119.23. A resumption of gains and a clear break of 119.23 would highlight a base and a potential continuation of the primary uptrend. For now, attention is on key support at 116.98, Jan 25 low. Clearance of this level would resume the recent bearish cycle and open 115.70, the Dec 8 low.

EQUITIES

EUROSTOXX50 TECHS: (H4) Fresh Cycle High

• RES 4: 4788.1 1.764 projection of the Nov 8 - 24 - 28 price swing
• RES 3: 4753.50 1.618 projection of the Nov 8 - 24 - 28 price swing
• RES 2: 4725.50 1.50 projection of the Nov 8 - 24 - 28 price swing
• RES 1: 4721.00 High Feb 7
• PRICE: 4699.00 @ 05:58 GMT Feb 8
• SUP 1: 4607.40 20-day EMA
• SUP 2: 4528.10 50-day EMA
• SUP 3: 4402.00 Low Jan 17 and key short-term support
• SUP 4: 4370.00 Low Nov 28

Eurostoxx 50 futures traded higher yesterday and again delivered fresh cycle highs, confirming a resumption of the current uptrend. This reinforces the bullish importance of the recent break of a key resistance at the Dec 14 high of 4634.00. The clear breach of the 4700.00 handle paves the way for a climb towards 4725.50, a Fibonacci projection. Initial firm support lies at 4607.40, the 20-day EMA.

E-MINI S&P TECHS: (H4) Bull Cycle Extends

• RES 4: 5110.50 2.00 proj of Nov 10 - Dec 1 - 7 price swing
• RES 3: 5100.00 Round number resistance
• RES 2: 5050.14 1.764 proj of Nov 10 - Dec 1 - 7 price swing
• RES 1: 5020.00 High Feb 7
• PRICE: 5014.75 @ 06:39 GMT Feb 8
• SUP 1: 4902.99 20-day EMA
• SUP 2: 4866.000/4796.82 Low Jan 31 / 50-day EMA values
• SUP 3: 4702.00 Low Jan 5
• SUP 4: 4594.00 Low Nov 30

The trend condition in S&P E-Minis is unchanged and remains bullish - yesterday’s gains reinforce current conditions. The contract has traded to a fresh cycle high, confirming a resumption of the uptrend. Recent corrections have been shallow - this also highlights a strong uptrend. The focus is on 5050.14, a Fibonacci projection. On the downside, initial key short-term support has been defined at 4866.00, the Jan 31 low.

COMMODITIES

BRENT TECHS: (J4) Corrective Bounce

• RES 4: $87.12 - High Oct 27
• RES 3: $86.03 - 76.4% retracement of the Sep 15 - Dec 13 bear cycle
• RES 2: $84.17 - High Jan 29 and key short-term resistance
• RES 1: $81.55 - High Feb 1
• PRICE: $79.63 @ 06:50 GMT Feb 8
• SUP 1: $76.13 - Low Jan 17
• SUP 2: $74.82 - Low Jan 03
• SUP 3: $72.96 - Low Dec 13 and the bear trigger
• SUP 4: $70.99 - Low Jun 23 ‘23

Brent futures remain in a bear-mode condition following the reversal last week and the current recovery appears to be a correction. The move lower resulted in a break below the 50-day EMA. A resumption of weakness would signal scope for $76.13, the Jan 17 low, ahead of $74.82, the Jan 3 low. For bulls, a breach of $84.17, the Jan 29 high, is required to reinstate a bullish theme. First resistance is $81.55, the Feb 1 high.

WTI TECHS: (H4) Bear Threat Still Present

• RES 4: $86.68 - High Sep 19 and a key resistance
• RES 3: $85.71 - High Oct 20
• RES 2: $82.34 - 76.4% retracement of the Sep 19 - Dec 13 bear cycle
• RES 1: $76.95/79.29 - High Feb 1 / High Jan 29 and a key resistance
• PRICE: $74.21 @ 07:01 GMT Feb 8
• SUP 1: $70.62 - Low Jan 17
• SUP 2: $69.56 - Low Jan 3
• SUP 3: $68.28 - Low Dec 13 and the bear trigger
• SUP 4: $65.63 - Low Jun 12

WTI futures remain soft following last week’s steep sell-off and short-term gains are considered corrective. A resumption of weakness would expose support at $70.62, the Jan 17 low, and $69.56, the Jan 3 low. For bulls, a reversal higher is required to refocus attention on the key short-term resistance at $79.29, the Jan 29 high. Clearance of this level would reinstate a bullish theme. Initial resistance is at $76.95, the Feb 1 high.

GOLD TECHS: Watching Support

• RES 4: $2135.4 - High Dec 4 and all-time high
• RES 3: $2097.1 - 76.4% retracement of the Dec 4 - 13 bear leg
• RES 2: $2088.5 - High Jan 12 / High Dec 28
• RES 1: $2065.5 - High Feb 1
• PRICE: $2033.3 @ 07:04 GMT Feb 8
• SUP 1: $2015.0/2001.9 - Low Feb 5 / Low Jan 17
• SUP 2: $1973.2 - Low Dec 13 and key support
• SUP 3: $1931.7 - Low Nov 13
• SUP 4: $1908.3 - Low Oct 16

Gold is unchanged and the metal continues to trade above the Jan 17 low of $2001.9. Recent short-term gains improved a bullish condition and a resumption of the bull cycle would signal scope for a climb towards $2088.5, the Dec 28 high and a key resistance. For bears, a stronger reversal lower would instead refocus attention on $2001.9, where a break is required to reinstate the recent bearish theme.

SILVER TECHS: Bearish Conditions Still Intact

• RES 4: $26.135 - High May 5 and a key resistance
• RES 3: $25.761 - High Dec 4 and key resistance
• RES 2: $24.606/994 - High Dec 22 / 76.4% of Dec 4 - 13 bear leg
• RES 1: $23.534 - High Jan 12
• PRICE: $22.366 @ 07:23 GMT Feb 7
• SUP 1: $21.883 - Low Nov 13 and a key support
• SUP 2: $20.689 - Low Oct 3 and the bear trigger
• SUP 3: $19.904 - Low Mar 10 and a key support
• SUP 4: $19.904 - Low Mar 10 2023

A bearish theme in Silver remains intact and the latest move lower reinforces this condition. The recent breach of support at $22.510, the Dec 13 low, signals scope for a move to $21.883, the Nov 13 low. A break of this support would further strengthen the bearish theme. On the upside, initial key short-term resistance to watch is $23.534, the Jan 12 high. Clearance of this level would be bullish and highlight a stronger reversal.