MNI European Morning FI Technical Analysis

24 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) Focus Shifts To 165.44-93

*RES 4: 165.93 Monthly High Apr 18

*RES 3: 165.55 Monthly High June 14

*RES 2: 165.44 High June 26

*RES 1: 165.29 Bollinger band top

*PREVIOUS CLOSE: 164.89

*SUP 1: 164.71 Hourly support Aug 23

*SUP 2: 164.59 Hourly resistance Aug 23 now support

*SUP 3: 164.13 Daily Bull channel base

*SUP 4: 164.00 Hourly support Aug 18

*COMMENTARY: The 164.00 support provided the base for a rally that has defined

the week so far with bulls now initially focused on 165.44-93 where Apr & June

highs are located. Layers of support are accumulating with bears now needing a

close below 164.59 to ease bullish pressure and shift focus back to 164.00-13

where the bull channel base is located. Below 164.00 is needed to initially

target 163.17-69.

BOBL TECHS: (U17) Initial Focus On June High

*RES 4: 133.26 Monthly High June 12 

*RES 3: 133.24 Daily Bull channel top B 

*RES 2: 133.10 Daily Bull channel top A 

*RES 1: 133.09 Bollinger band top

*PREVIOUS CLOSE: 133.02

*SUP 1: 132.96 Hourly support Aug 23

*SUP 2: 132.89 High Aug 21 now support

*SUP 3: 132.75 Low Aug 22

*SUP 4: 132.65 Low Aug 18

*COMMENTARY: Bullish pressure has taken its toll with a break higher and bullish

close that sees bulls now focused on tests of 133.26 June highs. Daily studies

lingering around O/B is the concern for bulls. The 132.89 support is now key.

Bears look for a close below 132.89 to confirm an easing of bullish pressure and

shift focus back to 132.48-132.75 where a bull channel base, 21 & 100-DMAs are

located.

SCHATZ TECHS: (U17) 112.215 Support Key Today

*RES 4: 112.340 Low Apr 20 now resistance 

*RES 3: 112.320 Low Apr 5 now resistance 

*RES 2: 112.300 High Apr 24 now support, Bull channel top 

*RES 1: 112.290 Monthly High May 30

*PREVIOUS CLOSE: 112.235

*SUP 1: 112.215 Hourly support Aug 23 

*SUP 2: 112.185 Low Aug 23 

*SUP 3: 112.175 Low Aug 22 

*SUP 4: 112.150 Daily Bull channel base

*COMMENTARY: Sideways trading 112.130-190 ended with bullish closes above

112.190 that sees bulls focused on 112.290-340 where May highs and the bull

channel top are located. The Bollinger top (112.240) is the key concern for

bulls. Initial support is noted at 112.215 with bears needing a close below to

ease immediate bullish pressure and hint at a correction back to 112.130-185

where the bull channel base & 21-DMA are noted.

GILT TECHS: (U17) Below 127.49 To Target DMAs

*RES 4: 129.01 High June 15 

*RES 3: 128.68 High June 21 

*RES 2: 128.24 High Aug 11 

*RES 1: 128.10 High Aug 23

*PREVIOUS CLOSE: 127.92

*SUP 1: 127.76 Hourly resistance Aug 22 now support 

*SUP 2: 127.49 Low Aug 22 

*SUP 3: 127.22 Low Aug 16 

*SUP 4: 127.06 Low Aug 9

*COMMENTARY: Bears failed to capitalise on pressure on the 127.49 support with

the pair bouncing back towards the 128.24 resistance. Bulls need a close above

128.24 to reconfirm the bullish bias and initially target 128.68-129.19. Initial

support is now noted at 127.76 with bears needing a close below to ease pressure

on 128.24 and below 127.49 to shift immediate focus to 126.84-127.22.

SHORT-STERLING TECHS: (Z17) 21-DMA & 99.650 Levels Remain Key

*RES 4: 99.690 2017 Highs June 12 & 13

*RES 3: 99.673 Bollinger band top

*RES 2: 99.667 Daily Bull channel top

*RES 1: 99.650 High June 21 & Aug Repeatedly

*PREVIOUS CLOSE: 99.640

*SUP 1: 99.630 Repeated Daily Lows Aug

*SUP 2: 99.622 21-DMA

*SUP 3: 99.620 Low Aug 8 & 9

*SUP 4: 99.600 Low Aug 4

*COMMENTARY: The 99.650 resistance continues to cap attempts to break for a

fresh leg higher targeting 99.690 2017 highs. Initial support is noted at 99.630

but bears now look for a close below 99.620 to shift focus back to 55 & 100-DMAs

99.588-597. The Bollinger top (99.673) remains the key concern for bulls with

potential to limit follow through on a break higher.

EURIBOR TECHS: (H18) Bollinger Top Capping

*RES 4: 100.360 - High Oct 6 

*RES 3: 100.330 - High Oct 19 

*RES 2: 100.317 - Bollinger band top 

*RES 1: 100.315 - 2017 High Aug 22

*PREVIOUS CLOSE: 100.310

*SUP 1: 100.300 - Low Aug 11 - 16

*SUP 2: 100.299 - 21-DMA

*SUP 3: 100.286 - 55-DMA

*SUP 4: 100.275 - Alternating daily support/resistance

*COMMENTARY: Pressure remains on recent 2017 highs with the Bollinger band top

capping and modestly O/B daily studies also a concern. In saying that, bears

still need a close below the 21-DMA to ease bullish pressure and below the

55-DMA to signal a correction that initially targets the 100-DMA (100.272).

While the 21-DMA supports bull target 100.330-370.

US 10-YR FUTURE TECHS: (U17) Remains Supported On Dips

*RES 4: 127-080 - Monthly High June 14 

*RES 3: 127-070 - 200-WMA 

*RES 2: 127-020 - Bollinger band top 

*RES 1: 127-010 - High Aug 18

*PRICE: 126-270 @ 0430GMT

*SUP 1: 126-200 - Hourly resistance Aug 22 now support

*SUP 2: 126-160 - Low Aug 23

*SUP 3: 126-120 - 21-DMA

*SUP 4: 126-110 - Low Aug 17

*COMMENTARY: Bears failed to capitalise on Tuesday's sell-off with the

aggressive rally and bullish close retaining immediate focus on 127-010/120

where June highs and the bull channel top are located. Layers of support are

again accumulating and adding support to the bullish case. Bears now need a

close below 126-200 to ease bullish pressure and return focus to layers of

support 126-050-160 where the 21 & 55-DMAs are located.

US 10-YR YIELD TECHS: Focus Remains on 2017 Low

*RES 4: 2.264 - Hourly support Aug 16 now resistance 

*RES 3: 2.250 - Alternating hourly support/resistance 

*RES 2: 2.229 - Hourly resistance Aug 17 

*RES 1: 2.206 - Hourly support Aug 23 now resistance

*PRICE: 2.176 @ 0430GMT

*SUP 1: 2.164 - Low Aug 18 

*SUP 2: 2.153 - Bollinger band base 

*SUP 3: 2.121 - Low June 26 

*SUP 4: 2.103 - 2017 Low June 14

*COMMENTARY: Failure ahead of the 2.229 resistance adds to the significance of

this level and has resulted in bears remaining focused on tests of 2017 lows. A

close below 2.103 is needed to shift immediate bearish focus to the 100-WMA

(2.053) and overall focus to tests of 1.879. The 2.229 resistance remains key

with bulls needing a close above to ease bearish pressure and above 2.264 to

shift initial focus back to 2.289.

EUROSTOXX50 TECHS: Capped On Approach To 55-DMA 

*RES 4: 3497.29 High Aug 16 

*RES 3: 3495.20 55-DMA, Bear channel top 

*RES 2: 3484.66 High Aug 17 

*RES 1: 3467.78 High Aug 23

*PREVIOUS CLOSE: 3438.63

*SUP 1: 3432.05 Low Aug 23 

*SUP 2: 3412.87 Bollinger band base 

*SUP 3: 3410.02 Low Aug 21 

*SUP 4: 3399.34 200-DMA

*COMMENTARY: The index managed a pop above the 21-DMA (3464.98) Wednesday but

follow through remains lacking on approach to the 55-DMA & bear channel top and

3495.20-3539.48 region as a whole. Bulls look for a close above 3539.48 to end

bearish hopes and initially target 3615.06 June highs. The 3390.04-3411.06

support region is key. Bears need a close below to confirm a break of the

200-DMA and initially focus on 3335.77-3355.40.

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

[TOPICS: MTABLE]