MNI European Morning FI Technical Analysis

12 June 2018

By Kyle Shortland

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

Pdf - http://tinyurl.com/nhjogts

BUND TECHS: (U18) Bears Need Close Below 55-DMA

*RES 4: 162.15 High May 31

*RES 3: 161.75 High June 1

*RES 2: 160.68 Lows June 4 & 5 now resistance

*RES 1: 160.22 High June 11

*PREVIOUS CLOSE: 159.84

*SUP 1: 159.39 Low June 7

*SUP 2: 159.20 55-DMA

*SUP 3: 158.23 High May 16 now support

*SUP 4: 157.86 100-DMA

*COMMENTARY: Despite finding support ahead of the 55-DMA Thursday, topside

follow through remained absent to end the week. Losses to start the new week see

immediate focus on the 55-DMA today. Bears need a close below the 55-DMA to

confirm immediate focus on 157.14-158.23 where the 100-DMA is noted with below

157.14 to target 154.33 Feb lows. Bulls now need a close above 161.13 to gain

breathing room.

     BOBL TECHS: (U18) Bears Focused On 130.590-920

*RES 4: 132.120 High May 31 

*RES 3: 131.860 High June 5 

*RES 2: 131.630 High June 8 

*RES 1: 131.340 High June 11

*PREVIOUS CLOSE: 131.110

*SUP 1: 130.920 Low June 7

*SUP 2: 130.810 Low May 24

*SUP 3: 130.709 55-DMA

*SUP 4: 130.590 Low May 22

*COMMENTARY: The lack of topside follow through Friday following the bounce from

the week's low has been followed up with losses to start the new week with focus

currently on the 130.590-920 support region where the 55-DMA is located. Bears

then look for a close below 130.590 to initially pressure the 100-DMA (130.326)

with overall focus on 129.980 Apr lows. Bulls need a close above 132.120 to

return focus to 132.660-970 where 2018 highs are noted.

     SCHATZ TECHS: (U18) Bears Need Close Below 111.910

*RES 4: 112.155 Hourly resistance May 30 

*RES 3: 112.120 High May 31 

*RES 2: 112.065 High June 5 

*RES 1: 112.015 Hourly support June 8 now resistance

*PREVIOUS CLOSE: 111.945

*SUP 1: 111.941 21-DMA 

*SUP 2: 111.910 Low June 7 

*SUP 3: 111.822 55-DMA 

*SUP 4: 111.815 Alternating daily support/resistance

*COMMENTARY: Hesitation at 112.065 saw losses Monday with the contract currently

pressuring the 111.910-941 region where the 21-DMA is located. Bears now look

for a close below 111.910 to confirm a break and immediate focus on 111.798-822

where 55 & 100-DMAs are located. Layers of resistance remain 112.065-155 that

are seen as key. Bulls need a close above 112.065 to gain breathing room and

above 112.155 to shift focus back to 112.270-425 where 2018 highs are noted.

     GILT TECHS: (U18) 100-DMA Support Key This Week

*RES 4: 123.17 High June 1 

*RES 3: 122.51 High June 8 

*RES 2: 122.00 Hourly support June 8 now resistance 

*RES 1: 121.81 High June 11

*PREVIOUS CLOSE: 121.68

*SUP 1: 121.35 55-DMA 

*SUP 2: 120.95 100-DMA 

*SUP 3: 119.95 Monthly Low Apr 23 

*SUP 4: 119.61 Bollinger band base

*COMMENTARY: Despite bouncing from ahead of the 55-DMA, topside follow through

was lacking Friday leaving the contract looking offered. The 100-DMA is key

support this week. Bears need a close below the 100-DMA to confirm a break of

the 55-DMA and to confirm immediate focus on 119.95 Apr lows. Bulls now need a

close above 121.81 to gain breathing room and above 123.17 to return immediate

focus to 2018 highs.

     SHORT-STERLING TECHS: (U18) 200-DMA & 99.260 Levels Key

*RES 4: 99.347 100-WMA

*RES 3: 99.300 High May 25-30

*RES 2: 99.260 Lows May 25 & 30 now resistance

*RES 1: 99.240 High June 8

*PREVIOUS CLOSE: 99.230

*SUP 1: 99.188 200-DMA

*SUP 2: 99.140 Lows May 30 - Apr 3

*SUP 3: 99.135 55-DMA, 21-WMA

*SUP 4: 99.131 100-DMA

*COMMENTARY: The lack of topside follow through on last week's highs has

resulted in the contract correcting lower. Bears take comfort in the 21-DMA

capping and now look for a close below the 200-DMA to confirm initial focus on

99.131-140 where key DMA and WMAs are noted. The 99.260 resistance remains key

this week. Bulls need a close above the 21-DMA to gain breathing room and above

99.260 to return focus to 2018 highs.

     EURIBOR TECHS: (Z18) 100.275 Resistance Key Today

*RES 4: 100.295 - Alternating daily support/resistance 

*RES 3: 100.292 - 55-DMA 

*RES 2: 100.275 - Low June 4 & 5 now resistance 

*RES 1: 100.274 - 21-DMA

*PREVIOUS CLOSE: 100.255

*SUP 1: 100.245 - Lows June 7 & 8

*SUP 2: 100.241 - Bollinger band base

*SUP 3: 100.235 - Low May 31

*SUP 4: 100.215 - Low May 30

*COMMENTARY: The 55-DMA confirmed significance with the recovery from 2018 lows

remaining capped on approach. The failure ahead of the 55-DMA provided the

impetus for a sell-off and dips below the 200-DMA that sees immediate focus on

the 100.215-245 support region where the Bollinger base is noted. Bulls now need

a close above 100.275 to gain breathing room and above 100.295 to return focus

to 2018 highs.

     US 10-YR FUTURE TECHS: (U18) 118-30 & 120-00+ Key This Week

*RES 4: 120-24  Hourly resistance May 30a

*RES 3: 120-16  Hourly resistance May 30

*RES 2: 120-00+ High June 7

*RES 1: 119-23  Hourly resistance June 8

*PRICE: 119-15+ @ 0430GMT

*SUP 1: 119-08+ 21-DMA

*SUP 2: 119-04  Low June 7

*SUP 3: 118-30  Low May 24

*SUP 4: 118-19  High May 22 now support

*COMMENTARY: The failure at 120-00+ last week has left the contract looking

offered and focus on the 118-30/119-08+ support region where the 21-DMA is

situated. The 118-30 support remains key this week. Bears continue to look for a

close below to confirm a break of the 21-DMA and shift initial focus back to

2018 lows. Bulls now need a close above 120-00+ to confirm traction above the

100-DMA and add support to the case for a move back to 121-03/12+.

     US 10-YR YIELD TECHS: 2.884 & 3.014 Levels Key

*RES 4: 3.050 - Low May 22 

*RES 3: 3.014 - High May 24 

*RES 2: 2.994 - High June 7 

*RES 1: 2.970 - High June 11

*PRICE: 2.946 @ 0430GMT

*SUP 1: 2.921 - Hourly support June 8 

*SUP 2: 2.884 - Low June 7 

*SUP 3: 2.860 - Low June 1 

*SUP 4: 2.821 - Hourly support May 30

*COMMENTARY: Failure to take out 3.014 resulted in a sell-off Thursday and dips

below the 55-DMA (2.916). Bears now need a close below 2.884 lows from Thursday

to confirm a break of the 55-DMA and to return focus to 2.717-759 where Mar &

May lows are noted. Bulls now need a close above 3.014 to confirm a break of the

21-DMA (2.968) and target 2018 highs. Daily studies heading towards O/B levels

is a concern for bulls.

     EUROSTOXX50 TECHS: 3497.32-3540.03 Resistance Region Key

*RES 4: 3540.03 High May 28 

*RES 3: 3519.71 200-DMA 

*RES 2: 3504.01 21-DMA

*RES 1: 3497.32 High June 5

*PREVIOUS CLOSE: 3480.22

*SUP 1: 3454.12 High June 8 now support 

*SUP 2: 3422.03 Low June 8 

*SUP 3: 3420.84 Low June 1 

*SUP 4: 3383.17 Alternating daily support/resistance

*COMMENTARY: Correcting O/S daily studies remain the key concern for bears as

the index works its way back towards the 3497.32-3540.03 resistance region where

21 & 200-DMAs and the 55-WMA (3510.99) are situated. Bulls need a close above

the 200-DMA to initially hint at a move back to 3600.36 with above 3540.03 to

confirm. Bears continue to look for a close below 3420.84 to return focus to

3383.17.

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

[TOPICS: MTABLE]