MNI European Morning FI Technical Analysis

27 July 2017

By Kyle Shortland

Please click on this link to access MNI's daily European FI Technical Analysis

Pdf - http://tinyurl.com/nhjogts

BUND TECHS: (U17) 161.56 Support Key

*RES 4: 163.14 55-DMA

*RES 3: 163.06 100-DMA

*RES 2: 162.67 High July 24

*RES 1: 162.29 Hourly resistance July 25a

*PREVIOUS CLOSE: 161.96

*SUP 1: 161.93 Hourly resistance July 26 now support

*SUP 2: 161.64 21-DMA

*SUP 3: 161.56 Low July 25

*SUP 4: 161.02 Low July 13

*COMMENTARY: The 161.56 support remains key with bears unable to break lower

following the bearish close Tuesday and the recovery buying bulls breathing

space. Bulls continue to look for a close above 162.29 to shift immediate focus

to 55 & 100-DMAs and overall focus back to 164.04-13. The Bollinger top (163.03)

is the key concern for bulls with potential to limit follow through. Bears still

need a close below 161.56 to shift focus back to July lows so far at 160.31.

BOBL TECHS: (U17) Supported Ahead Of 21-DMA

*RES 4: 132.74 100-DMA 

*RES 3: 132.35 55-DMA 

*RES 2: 132.14 High July 24 

*RES 1: 132.04 Hourly resistance July 25

*PREVIOUS CLOSE: 131.94

*SUP 1: 131.82 Low July 26

*SUP 2: 131.74 Hourly support July 20, 21-DMA

*SUP 3: 131.64 Hourly support July 18

*SUP 4: 131.47 Low July 17

*COMMENTARY: Support emerging ahead of the 21-DMA is a concern for bears who

need a close below 131.65 to shift focus back to tests of the double daily

bottom at 131.30. The 132.14 resistance remains key with bulls needing a close

above to reconfirm a bullish bias and initially target 132.35-48 where 55 &

100-DMAs are located. The Bollinger top (132.12) is the key concern for bulls

with potential to limit follow through.

SCHATZ TECHS: (U17) Bears Need Close Below 112.010

*RES 4: 112.110 Low May 30 now resistance 

*RES 3: 112.090 High June 16 

*RES 2: 112.060 100-DMA 

*RES 1: 112.050 High July 27

*PREVIOUS CLOSE: 112.045

*SUP 1: 112.010 Hourly support July 26 

*SUP 2: 111.990 Low July 15 

*SUP 3: 111.970 Low July 24 

*SUP 4: 111.950 Hourly support July 18, Low July 19

*COMMENTARY: The rally Wednesday sees bull's gaining traction above the 55-DMA

(112.020) with immediate pressure now on the 100-DMA. Layers of support are

accumulating with bears now needing a close below 112.010 to shift focus back to

111.950-970 where the daily bull channel base is located. Bulls continue to look

for a close above the 100-DMA to confirm initial focus on 112.090-120 and

overall focus on 112.180-230.

GILT TECHS: (U17) 125.62 Support Remains Key

*RES 4: 126.80 100-DMA 

*RES 3: 126.67 High July 24 

*RES 2: 126.22 Hourly support July 25 now resistance 

*RES 1: 126.05 High July 26

*PREVIOUS CLOSE: 125.93

*SUP 1: 125.62 High July 17 now support 

*SUP 2: 125.39 Daily Bull channel base 

*SUP 3: 124.95 Low July 14 

*SUP 4: 124.71 Low July 7

*COMMENTARY: Despite looking heavy and flirting with the 21-DMA (125.68) Tuesday

bears were unable to manage the break below 152.62 needed to confirm focus on

124.71-95. Layers of resistance remain with bulls needing a close above 126.22

to ease bearish pressure and shift immediate focus to 126.67-127.70 where 100 &

55-DMAs are located. Bears continue to look for a close below 125.62 to confirm

a break of the 21-DMA and focus on 124.71-95.

SHORT-STERLING TECHS: (Z17) 99.560 Support Key

*RES 4: 99.690 2017 Highs June 12 & 13

*RES 3: 99.650 High June 21

*RES 2: 99.610 Bollinger band top

*RES 1: 99.600 High July 26

*PREVIOUS CLOSE: 99.590

*SUP 1: 99.570 Low July 25

*SUP 2: 99.560 Low July 20

*SUP 3: 99.540 Alternating daily support/resistance

*SUP 4: 99.537 200-DMA

*COMMENTARY: Bulls managed a break of the 99.590 resistance but the lack of

follow through is less than ideal with daily studies at O/B levels and looking

to correct. The 99.560 support remains key with bears needing a close below to

ease bullish pressure and shift immediate focus back to 21 & 200-DMAs

99.537-538. While 99.570 supports bulls now focus on tests of the 99.650 high

from June 21.

EURIBOR TECHS: (H18) 100.285 Support Key

*RES 4: 100.360 - High Oct 6 

*RES 3: 100.330 - High Oct 19 

*RES 2: 100.305 - 2017 High June 14 & 22 

*RES 1: 100.300 - High July 25

*PREVIOUS CLOSE: 100.295

*SUP 1: 100.285 - Low July 25 & 26

*SUP 2: 100.275 - High July 14 & 17 now support

*SUP 3: 100.274 - 55-DMA

*SUP 4: 100.265 - Daily Bull channel base

*COMMENTARY: The bearish key day reversal failed to produce a break lower with

support at 100.285. Bears look for a close below this level to ease bullish

pressure and signal a correction back to 100.265-275 where 21 & 55-DMAs and the

daily bull channel base are situated. While 100.285 supports bulls retain the

upper hand and focus on a break of 100.305 needed to target the 100.330-360

region. The Bollinger top and O/B studies remain the key concerns for bulls.

US 10-YR FUTURE TECHS: (U17) Bulls Regain Upper Hand

*RES 4: 126-290 - High June 26 

*RES 3: 126-120 - High July 21 & 24 

*RES 2: 126-080 - Daily Bear channel top 

*RES 1: 126-020 - Low July 24 now resistance

*PRICE: 125-300 @ 0430GMT

*SUP 1: 125-280 - Hourly support July 26

*SUP 2: 125-230 - Hourly resistance July 26 now support

*SUP 3: 125-150 - Low July 25

*SUP 4: 125-070 - High July 11 now support, 100-DMA

*COMMENTARY: Time spent below the 21 (125-200) & 55 (125-300) DMAs was brief

with the rally and bullish close seeing focus return to 126-080/120. Bulls

continue to look for a close above 126-120 to end bearish hopes and shift focus

to 126-290/127-080 where 2017 highs are located. Layers of support are building

with bears now needing a close below 125-230 to ease bullish pressure and below

125-150 to see the 100-DMA pressured.

US 10-YR YIELD TECHS: 2.229 Support Key

*RES 4: 2.366 - High July 13

*RES 3: 2.363 - Daily Bear channel top

*RES 2: 2.337 - Hourly resistance July 14

*RES 1: 2.312 - 100-DMA, Hourly support July 26 now resistance

*PRICE: 2.278 @ 0430GMT

*SUP 1: 2.254 - 55-DMA 

*SUP 2: 2.241 - Hourly support July 24 

*SUP 3: 2.229 - Low July 21, Low July 24 

*SUP 4: 2.177 - High June 21 now support

*COMMENTARY: Bulls failed to capitalise on the bounce from 2.229 with the

sell-off Wednesday leaving the yield looking heavy and focus back on the 2.229

support. Bears continue to look for a close below 2.229 to confirm focus on

tests of 2017 lows. Layers of resistance are again building with bulls needing a

close above 2.312 to gain breathing room and above 2.337 to see pressure back to

2.363-396.

EUROSTOXX50 TECHS: Layers Of Resistance 3517.58-3555.37 Key 

*RES 4: 3529.99 High July 20 

*RES 3: 3515.84 100-DMA 

*RES 2: 3508.90 Hourly support July 20 now resistance 

*RES 1: 3494.66 High July 25

*PREVIOUS CLOSE: 3491.19

*SUP 1: 3472.07 Low July 26 

*SUP 2: 3463.74 Hourly resistance July 24 now support 

*SUP 3: 3431.19 Low July 24 

*SUP 4: 3407.33 Monthly Low Apr 19

*COMMENTARY: The recovery from Monday's low is gaining traction with immediate

focus back on key layers of resistance 3517.58-3555.37 where 55 & 100-DMAs and

the bear channel top are situated. Bulls need a close above 3555.37 to confirm a

bullish bias and above 3615.06 to target 2017 highs. Layers of support are

accumulating with bears needing a close below to ease bullish pressure and

return initial focus to 3431.19.

--MNI Beijing Bureau; tel: +44 207-862-7435; email: kyle.shortland@mni-news.com

[TOPICS: MTABLE]