MNI European Morning FI Technical Analysis

29 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) Bulls Focused On 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, Bollinger band top

*RES 1: 164.98 High Aug 28

*PREVIOUS CLOSE: 164.76

*SUP 1: 164.67 Daily Bull channel base A

*SUP 2: 164.58 Low Aug 28

*SUP 3: 164.36 Low Aug 25

*SUP 4: 164.12 Low Aug 22

*COMMENTARY: Bulls have taken out the double daily top and remain focused on

165.44.93 where monthly highs are located. The contract continues to find

support on dips back to the bull channel base. Bears continue to look for a

close below 164.36 to confirm an easing of bullish pressure and shift focus back

to 163.15-00 where key DMAs are clustered. Modestly O/B studies are less than

ideal with the Bollinger top likely to limit follow through on a break higher.

BOBL TECHS: (U17) 132.84 Support Now Key

*RES 4: 133.42 Daily Bull channel top B 

*RES 3: 133.26 Monthly High June 12 

*RES 2: 133.21 Daily Bull channel top A 

*RES 1: 133.16 High Aug 28

*PREVIOUS CLOSE: 133.08

*SUP 1: 132.94 Low Aug 28

*SUP 2: 132.87 Daily Bull channel base A

*SUP 3: 132.84 Low Aug 25

*SUP 4: 132.75 Low Aug 22

*COMMENTARY: Bullish pressure took its toll with a break higher Wednesday that

shifted bullish focus to tests of 133.26 June highs. Daily studies lingering

around O/B and the Bollinger top (133.203) remain concerns for bulls. The 132.84

support is now key with bears needing a close below to confirm a break of a

channel base and shift focus back to DMAs 132.306-652. Bulls look for a close

above 133.26 to confirm focus on 133.52 Apr highs.

SCHATZ TECHS: (U17) Supported On Dips

*RES 4: 112.300 High Apr 24 now support 

*RES 3: 112.290 Monthly High May 30 

*RES 2: 112.263 Bollinger band top 

*RES 1: 112.260 High Aug 28

*PREVIOUS CLOSE: 112.250

*SUP 1: 112.215 Low Aug 28 

*SUP 2: 112.202 Daily Bull channel base A 

*SUP 3: 112.190 Low Aug 25 

*SUP 4: 112.175 Low Aug 22

*COMMENTARY: Since sideways trading 112.130-190 ended the contract has attracted

support on dips. Bears look for a close below 112.175 to confirm an easing of

bullish pressure and below 112.130 to confirm a break of the 21-DMA and

initially pressure 112.043-072 where 55 & 100-DMAs are situated. Bulls remain

focused on 112.290-340 where May highs and the bull channel top are located. The

Bollinger band top is the key concern for bulls.

GILT TECHS: (U17) Below 127.76 To Ease Bullish Pressure

*RES 4: 129.19 Monthly High June 14 

*RES 3: 129.01 High June 15 

*RES 2: 128.68 High June 21, Bollinger band top 

*RES 1: 128.24 High Aug 11

*PREVIOUS CLOSE: 128.08

*SUP 1: 127.80 Low Aug 24 

*SUP 2: 127.76 Hourly resistance Aug 22 now support 

*SUP 3: 127.49 Low Aug 22 

*SUP 4: 127.29 21-DMA

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

the pair bouncing back towards the 128.24 resistance last week. Bulls need a

close above 128.24 to reconfirm the bullish bias and initially target

128.68-129.19. Bears continue to look for close below 127.76 to ease pressure on

128.24 and below 127.49 to shift immediate focus to 126.87-127.29 where key DMAs

are clustered.

SHORT-STERLING TECHS: (Z17) 99.620 & 99.650 Levels Remain Key

*RES 4: 99.690 2017 Highs June 12 & 13

*RES 3: 99.670 Bollinger band top

*RES 2: 99.697 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: 99.626 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 remains at 99.630

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

99.587-596. The Bollinger top (99.670) remains the key concern for bulls with

potential to limit follow through on a break higher.

EURIBOR TECHS: (H18) Bears Need Close Below Channel Base

*RES 4: 100.360 - High Oct 6 

*RES 3: 100.330 - High Oct 19 

*RES 2: 100.320 - Bollinger band top 

*RES 1: 100.315 - 2017 High Aug 22

*PREVIOUS CLOSE: 100.315

*SUP 1: 100.303 - 21-DMA

*SUP 2: 100.300 - Low Aug 11 - 16

*SUP 3: 100.297 - Daily Bull channel base

*SUP 4: 100.287 - 55-DMA

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

capping and modestly O/B daily studies correcting also a concern and weighing a

little. In saying that, bears now need a close below the daily bull channel base

to ease bullish pressure and below the 55-DMA to signal a correction that

initially targets the 100-DMA (100.274). While the channel base supports bull

target 100.330-370.

US 10-YR FUTURE TECHS: (U17) 126-250/300 Support Region Key

*RES 4: 127-310 - 100-WMA 

*RES 3: 127-170 - 2017 High June 14 (continuation) 

*RES 2: 127-160 - Daily Bull channel top 

*RES 1: 127-110 - Hourly resistance Aug 28

*PRICE: 127-060 @ 0430GMT

*SUP 1: 126-300 - Repeated daily highs now support

*SUP 2: 126-250 - Hourly support Aug 25

*SUP 3: 126-200 - Hourly resistance Aug 22 now support

*SUP 4: 126-170 - Daily Bull channel base

*COMMENTARY: Bullish confidence grows with an early Asia rally that added

support to the case for tests of 127-160/170 where the bull channel top and

continuation contract 2017 high are noted. Layers of support continue to build.

Bears now look for a close below 126-300 to ease immediate bullish pressure and

below 126-250 to hint at a correction back to 126-110-170 where the bull channel

base and 21-DMA are situated.

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

*RES 4: 2.229 - Hourly resistance Aug 17 

*RES 3: 2.206 - Hourly support Aug 23 now resistance 

*RES 2: 2.180 - High Aug 28 

*RES 1: 2.155 - Low Aug 28 now resistance

*PRICE: 2.128 @ 0430GMT

*SUP 1: 2.122 - Hourly support Aug 29 

*SUP 2: 2.121 - Low June 26 

*SUP 3: 2.103 - 2017 Low June 14 

*SUP 4: 2.054 - 100-WMA

*COMMENTARY: Failure ahead of the 2.229 resistance last week added to the

significance of this level and 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 and overall focus to tests of 1.879. Layers of resistance are

accumulating and weighing with bulls needing a close above 2.155 to gain

breathing room and above 2.180 to shift focus back to 2.206-2.229.

EUROSTOXX50 TECHS: Bears Need Close Below 3390.04 

*RES 4: 3484.66 High Aug 17 

*RES 3: 3467.78 High Aug 23 

*RES 2: 3457.94 21-DMA 

*RES 1: 3439.65 High Aug 28

*PREVIOUS CLOSE: 3421.03

*SUP 1: 3411.06 Low Aug 21 

*SUP 2: 3405.28 200-DMA 

*SUP 3: 3402.10 Bollinger band base 

*SUP 4: 3390.04 Low Mar 14

*COMMENTARY: The index managed a pop above the 21-DMA Wednesday but follow

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

3490.35-3539.48 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 3390.04 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]