MNI US Morning Fixed Income Technical Analysis

By Les Castell

     Click below for today's MNI US Morning FI Technical Analysis Report -

http://tinyurl.com/h8pyhnq

US 5YR FUTURE TECHS: (U17) Fresh Rise Challenges 118-310/118-320 Resistance

*RES 4: 119-137 Median line off Mar & May lows

*RES 3: 119-025 50% Fibo of 121-215/116-155

*RES 2: 119-015 7 week bull channel top projection

*RES 1: 118-310/320 Apr 17, May 18, Aug 29 highs

*PRICE: 118-245 @1035GMT

*SUP 1: 118-205 Aug 23 high, now support

*SUP 2: 118-157/160 Hourly congestion area Aug 24-28

*SUP 3: 118-132/135 Aug 23, Aug 25 lows

*SUP 4: 118-057 Aug 16 low

*COMMENTARY* The break through 118-247 switched the overall bias back to the

topside again and has been followed by a renewed challenge to the Apr/May highs

at 118-310/118-320. Above here and the 7 week bull channel top projection at

119-015 and the 50% Fibo retrace at 119-025 can be the next prohibitors to near

term gains. In the interim, support rises to between two former highs 118-227

and 118-205. Currently only a loss of 118-157 would suggest some caution.

US 10YR FUTURE TECHS: (U17) Rally Spikes The Top Of The 7 Week Bull Channel

*RES 4: 128-215 Median line off Mar and May lows

*RES 3: 128-105 61.8% Fibo of 131-235/122-145

*RES 2: 128-045 1% volatility band

*RES 1: 127-190 Aug 29 high

*PRICE: 127-050 @1040GMT

*SUP 1: 127-010/015 Intraday low, Aug 18 high

*SUP 2: 126-305 Aug 23 high, now support

*SUP 3: 126-245 Hourly congestion Aug 24-28

*SUP 4: 126-160 Aug 23 low

*COMMENTARY* The move back above 127-015 has rejuvenated the topside and seen a

break above the Jun 14 high at 127-080 and also the 7 week bull channel top. A

high of 127-190 so far, with the upper 1% volatility band at 128-045 the next

barrier above. Only through here will allow a look at dual Fibo resistance

situated between 128-105/128-110. As a result, support comes initially from two

previous 127-015 and 126-305 highs, with 126-245 more of a concern below.

US 30YR FUTURE TECHS: (U17) Potentially Bearish 'Doji' Candle Close

*RES 4: 159-15 2% volatility band

*RES 3: 158-21 6 week bull channel top projection

*RES 2: 158-04 Aug 29 high

*RES 1: 157-19/25 Hourly resistance

*PRICE: 157-03 @1049GMT

*SUP 1: 156-23/24 Intraday low, Aug 25 high

*SUP 2: 156-05 Aug 28 low

*SUP 3: 155-29 Aug 11 high, Aug 25 low

*SUP 4: 155-16 Aug 22, Aug 23 lows

*COMMENTARY* Broke through 157-08/157-27, reaching 158-04 on Tuesday, as we

headed towards the 6 week bull channel top projection at 158-21. The subsequent

fall is a concern however, creating a potentially bearish 'Doji' candle close on

the daily chart. Initial support around 156-24 has already seen a test, loss

would allow a further 156-05/155-16 fall, as we correct gains from the Aug 15

low at 153-24. In the interim, 157-19/157-25 provides near term resistance.

     US EURODOLLAR TECHS: (Z17) Rally Brings 98.610-98.630 Resistance To The

Fore

*RES 4: 98.680 May 30 2016 low, now resistance

*RES 3: 98.655 May 18 high

*RES 2: 98.630 Jun 14 high

*RES 1: 98.610 Jun 6 high

*PRICE: 98.580 @1051GMT

*SUP 1: 98.555 Aug 25 low

*SUP 2: 98.535 Congestion area Jul 27-Aug 17

*SUP 3: 98.520 Jul 25, Jul 26 lows

*SUP 4: 98.495 Jul 6 low, 50% Fibo of 98.335-98.655

*COMMENTARY* After weeks of consolidation we have seen a break above

98.580-98.590 resistance. This should allow some further progression, as we claw

back losses from the May 18 high at 98.655. Next up is the Jun 6 high at 98.610

and then the Jun 14 high at 98.630. Back above the latter required however,

before the near term bias will switch from corrective to favour the topside

again. Support rises to 98.555 initially and then backed up by 98.535-98.520.

--MNI London Bureau;tel: +44 207-862-7495; email: les.castell@marketnews.com

[TOPICS: MTABLE]