MNI European Morning FI Technical Analysis

1 August 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) 162.67 Resistance Remains Key

*RES 4: 163.07 100-DMA

*RES 3: 162.67 High July 24

*RES 2: 162.50 High July 27

*RES 1: 162.19 High July 31

*PREVIOUS CLOSE: 161.97

*SUP 1: 161.72 Low July 31

*SUP 2: 161.60 21-DMA

*SUP 3: 161.55 Hourly support July 28

*SUP 4: 161.37 Low July 28

*COMMENTARY: The break of the 161.56 support Friday lacked follow through with

the break reversed and the 161.02-37 support region now key. Bears continue to

look for a close below 161.02 to end bullish hopes and confirm focus on

160.17-31. Bulls continue to look for a close above 162.67 to shift immediate

focus to 163.07-163.31 and overall focus back to 164.13. The Bollinger top

(162.65) is the key concern with potential to limit follow through.

BOBL TECHS: (U17) 132.01 Support Key

*RES 4: 132.39 100-DMA 

*RES 3: 132.35 55-DMA

*RES 2: 132.28 Daily Bull channel top 

*RES 1: 132.17 High July 31

*PREVIOUS CLOSE: 132.05

*SUP 1: 132.01 Alternating hourly support/resistance

*SUP 2: 131.87 Low July 28

*SUP 3: 131.82 Low July 26

*SUP 4: 131.77 21-DMA

*COMMENTARY: The break of last week's high Monday has lacked follow through

which is less than ideal with daily studies looking to correct from O/B. Initial

support remains at 132.01 with bears needing a close below to shift focus to

131.64-87. Below 131.64 remains needed to shift focus back to 131.30 July lows.

Bulls now need a close above 132.17 to reconfirm focus on 132.28-48 where the

bull channel top and key DMAs are situated.

SCHATZ TECHS: (U17) Bears Need Close Below 100-DMA

*RES 4: 112.150 Daily Bull channel top 

*RES 3: 112.110 Low May 30 now resistance 

*RES 2: 112.090 High June 16 

*RES 1: 112.085 High July 31

*PREVIOUS CLOSE: 112.070

*SUP 1: 112.050 100-DMA 

*SUP 2: 112.020 Low July 28, 55-DMA 

*SUP 3: 112.010 Hourly support July 26 

*SUP 4: 112.000 Daily Bull channel base

*COMMENTARY: Higher daily highs and lows continue which adds support to the

bullish case. Layers of resistance remain 112-090/110 with bulls needing a close

above to target 112-180/230 although the channel top may slow the move. Layers

of support continue to accumulate with bears needing a close below the 100-DMA

to ease bullish pressure and shift focus back to 112.000-020 where the bull

channel base and 55-DMA are located.

GILT TECHS: (U17) 125.56 Support Key Today

*RES 4: 126.96 55-DMA 

*RES 3: 126.82 100-DMA 

*RES 2: 126.67 High July 24 

*RES 1: 126.54 High July 25

*PREVIOUS CLOSE: 126.04

*SUP 1: 125.86 Hourly support July 26 

*SUP 2: 125.74 21-DMA 

*SUP 3: 125.62 High July 17 now support 

*SUP 4: 125.56 Daily Bull channel base

*COMMENTARY: Hesitation ahead of layers of resistance 126.54-96 is less than

ideal for bulls as daily studies correct from O/B. Monday's close leaves the

contract looking heavy with the 125.56-86 support region currently key. Bears

need a close below the bull channel base to shift focus back to 124-71-95. Bulls

continue to look for a close above the 55-DMA to hint at a shift higher in focus

with above 127.20 targeting 127.66-128.68.

SHORT-STERLING TECHS: (Z17) O/B Studies Correcting

*RES 4: 99.690 2017 Highs June 12 & 13

*RES 3: 99.650 High June 21

*RES 2: 99.620 Bollinger band top

*RES 1: 99.610 High July 27 & 28

*PREVIOUS CLOSE: 99.580

*SUP 1: 99.579 100-DMA

*SUP 2: 99.570 Low July 25

*SUP 3: 99.560 Low July 20

*SUP 4: 99.540 Alternating daily support/resistance

*COMMENTARY: O/B daily studies looking to correct appear to be impacting with a

sell-off and bearish close that sees pressure back on the 100-DMA. Bears now

look for a close below the 100-DMA to confirm focus on 99.530-560 where 21 &

200-DMAs and the bull channel base are situated. The 99.610 resistance remains

key with bulls needing a close above to reconfirm a bullish bias targeting

99.650-690.

EURIBOR TECHS: (H18) Pressuring Key Support

*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: 100.285

*SUP 1: 100.285 - Low July 25 - 28

*SUP 2: 100.275 - High July 14 & 17 now support, 21 & 55-DMA

*SUP 3: 100.269 - Daily Bull channel base

*SUP 4: 100.252 - 100-DMA

*COMMENTARY: The lack of follow through on the spike to 100.300 on July 25 has

left the contract looking a little heavy and pressuring the 100.285 support.

Bears continue to look for a close below 100.285 to ease bullish pressure and

signal a correction back to 100.269-275 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.

US 10-YR FUTURE TECHS: (U17) Topside Hesitation Now A Worry

*RES 4: 126-120 - High July 21 & 24 

*RES 3: 126-050 - Daily Bear channel top 

*RES 2: 126-020 - Low July 24 now resistance 

*RES 1: 125-310 - Hourly resistance July 31

*PRICE: 125-240 @ 0430GMT

*SUP 1: 125-210 - Alternating hourly support/resistance

*SUP 2: 125-150 - Low July 25

*SUP 3: 125-100 - 100-DMA

*SUP 4: 124-070 - High July 11 now support

*COMMENTARY: Continued hesitation ahead of the 126-020 resistance and bear

channel top combined with a lack of follow through above the 55-DMA (126-000) is

less than ideal for bulls who need a close above 126-020 to initially target

126-120. The 125-070/150 support region remains key with the 100-DMA noted at

125-100. Bears look for a close below 125-070 to end bullish hopes and shift

initial focus to 124-210/250.

US 10-YR YIELD TECHS: 2.228-229 Support Key

*RES 4: 2.366 - High July 13

*RES 3: 2.354 - Daily Bear channel top

*RES 2: 2.337 - Hourly resistance July 14

*RES 1: 2.313 - 21-DMA

*PRICE: 2.305 @ 0430GMT

*SUP 1: 2.285 - Hourly support July 31 

*SUP 2: 2.273 - Low July 31 

*SUP 3: 2.249 - 55-DMA 

*SUP 4: 2.241 - Hourly support July 24

*COMMENTARY: The rejection around 2.337 last week left the yield looking heavy

and immediate focus on 2.228-229 where the 200-WMA is situated. Bears look for a

close below the 200-WMA to confirm focus back on the 2.103 2017 low and below

2.103 to target 1.879. Layers of resistance remain with bulls needing a close

above 2.337 to see pressure back on 2.354-396 where the bear channel top and

July highs are located.

EUROSTOXX50 TECHS: 21-DMA Now Capping 

*RES 4: 3519.84 100-DMA 

*RES 3: 3508.90 Hourly support July 20 now resistance 

*RES 2: 3483.89 21-DMA 

*RES 1: 3480.78 Hourly support July 26 now resistance

*PREVIOUS CLOSE: 3449.36

*SUP 1: 3437.39 Bollinger band base 

*SUP 2: 3431.19 Low July 24 

*SUP 3: 3407.33 Monthly Low Apr 19 

*SUP 4: 3390.04 Low Mar 13

*COMMENTARY: Hesitation ahead of the 100-DMA continues with the 21-DMA now

capping and the index looking heavy. Immediate focus is back on the 3431.19

range base with a close below shifting initial focus to 3390.04-3392.63 where

the bear channel base is noted. Bulls now need a close above the 21-DMA to ease

immediate bearish pressure and shift focus back to 3519.84-3555.37 where 55 &

100-DMAs and the bear channel top are situated.

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

[TOPICS: MTABLE]