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: (Z17) Correction Continues As 118-090/118-097 Gives Way

*RES 4: 118-277/285 Hourly recovery Sep 8, Sep 6 high

*RES 3: 118-237 Sep 11 high

*RES 2: 118-192 Sep 10 low, now resistance

*RES 1: 118-132 Sep 13 high

*PRICE: 118-072 @1026GMT

*SUP 1: 118-057 Hourly support

*SUP 2: 118-025 50% Fibo of 117-035/119-015

*SUP 3: 117-272/280 61.8% Fibo of 117-035/119-015, Aug 16 low

*SUP 4: 117-170/180 Jul 25 low, 76.4% Fibo of 117-035/119-015

*COMMENTARY* Having lost support from the 9 week bull channel earlier in the

week, today we have traded slightly below the next key area between

118-097/118-090. Loss continues the correction of the 117-035/119-015 gains seen

since early July. This now sees the potential for a deeper fall towards the next

set of supports between 118-025/117-272. Meanwhile, resistance falls to 118-132,

above here currently needed for some near term respite.

US 10YR FUTURE TECHS: (Z17) 126-250 Resistance Keeps Immediate Bias Lower

*RES 4: 127-125 Sep 8 low, now resistance

*RES 3: 127-055 Sep 10 low, now resistance

*RES 2: 127-015 Hourly high Sep 11

*RES 1: 126-250 Sep 13 high

*PRICE: 126-160 @1036GMT

*SUP 1: 126-130 Hourly support

*SUP 2: 126-050/065 50% of 124-140/127-285, Aug 23 low

*SUP 3: 125-240 61.8% Fibo of 124-140/127-285

*SUP 4: 125-215 Aug 16 low

*COMMENTARY* Pullback is below the 9 week bull channel base at 126-265. This was

the protection against a deeper correction of the 124-140/127-285 gains seen

since early July. Have today also lost support from the key 126-180 area, 

beneath which opens up the prospect of a further 126-065/125-240 fall. In the

interim, nearest resistance now comes from 126-250, above would ease immediate

pressure and allow some respite.

US 30YR FUTURE TECHS: (Z17) 154-30 Under Attack, Fall Tests 1% Volatility Band

*RES 4: 157-12 Sep 5 high

*RES 3: 156-29 Sep 11 high

*RES 2: 156-05 Hourly recovery high Sep 11 

*RES 1: 155-18/27 Sep 13 high, broken support line

*PRICE: 154-26 @1054GMT

*SUP 1: 154-22/30 Intraday low, 1% vol, 50% of 151-18/158-09

*SUP 2: 154-04 61.8% Fibo of 151-18/158-09

*SUP 3: 153-24 Aug 15 low

*SUP 4: 153-03/05 2% vol band, 76.4% Fibo of 151-18/158-09

*COMMENTARY* The loss of 156-07 was the initial warning, then the 7 week support

line at 155-27 gave way. Now the key 154-30 level has come under challenge

today, a low of 154-22 so far, in line with the lower 1% volatility band. This

currently protects against a further 154-04 fall. In the meantime, resistance

falls to 155-18/155-27, presently require a move back above here to ease

pressure.

     US EURODOLLAR TECHS: (Z17) Six Month Rising Support Line At 98.570 Today

*RES 4: 98.695 38.2% Fibo of 99.270-98.335

*RES 3: 98.680 May 30 2016 low, now resistance

*RES 2: 98.655 May 18 high

*RES 1: 98.635 Sep 8 high

*PRICE: 98.580 @1056GMT

*SUP 1: 98.570 6 month rising support line

*SUP 2: 98.560 Aug 25 low, Aug 3-4 highs

*SUP 3: 98.545 Congestion area Jul 26-Aug 10

*SUP 4: 98.520 Jul 25-Jul 26 lows

*COMMENTARY* After weeks of consolidation we saw a break above 98.580-98.590

resistance back on Aug 29. This has allowed some further progression and with

the subsequent move through 98.630, this brought the May 18 high at 98.655 back

into view. As a result, support also rises, focus now on  98.570, the 6 month

support line, loss would suggest scope for a deeper fall, as we give back some

of the recent gains from 98.520.

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

[TOPICS: MTABLE]