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: (M18) Decline Nears Next Equality Fall Target At 112-210 

*RES 4: 113-170 May 10 high

*RES 3: 113-112 May 11 high

*RES 2: 113-077 May 9 low, now resistance

*RES 1: 113-035 May 18 high

*PRICE: 112-320 @1035GMT

*SUP 1: 112-275 Hourly support

*SUP 2: 112-250 May 17 low

*SUP 3: 112-210 Equality fall from 118-320 to 122-285/116-155

*SUP 4: 112-125 June 2009 low

*COMMENTARY* The loss of pivotal 113-272 support returned the overall focus to

the downside last month, followed by a break of the key 113-180/113-170 area. A

low of 112-250 so far, breaking below 112-290, the first of two equality fall

targets. In the meantime, 113-035 and then the May 9 low at 113-077 provide

initial resistance to any recovery prospects. Below 112-250 and look to the next

equality fall target at 112-210.

US 10YR FUTURE TECHS: (M18) Downside Attention Switches To 6 Year Median Line

*RES 4: 119-215 May 10 high

*RES 3: 119-115 Hourly congestion lows May 10-14

*RES 2: 119-060 May 9 low, now resistance

*RES 1: 118-305 Intraday high

*PRICE: 118-250 @1038GMT

*SUP 1: 118-190 Hourly support

*SUP 2: 118-140/150 Hourly congestion area May 17

*SUP 3: 118-105 May 17 low

*SUP 4: 118-050 6 year median line

*COMMENTARY* Last week's decline saw the equality fall target at 118-150 give

way. A low of 118-105 seen on Thursday, so far keeping us away from a test to

the 6 year median line support at 118-050. In the meantime, some near term

oversold conditions have allowed a bounce, 118-305 the limit of the recovery so

far, the May 9 low at 119-060 currently of more consequence higher. Support from

between 118-190/118-140 now protects against a fresh move down.

US 30YR FUTURE TECHS: (M18) 141-19/142-15 The Immediate Bar To Further Recovery

*RES 4: 143-21 May 11 high

*RES 3: 143-10 Congestion area May 4-11

*RES 2: 142-15 May 9 low, now resistance

*RES 1: 141-17/19 Apr 25 low, May 16, May 21 highs

*PRICE: 141-07 @1043GMT

*SUP 1: 140-16/22 Hourly support

*SUP 2: 140-05 May 17 low

*SUP 3: 139-14 76.4% Fibo of 127-23/177-11

*SUP 4: 138-27 1.618 swing of 155-26/158-09

*COMMENTARY* The fall continued last week, reaching a low of 140-05 on Thursday,

before seeing a small bounce aided by some near term oversold conditions. In

this respect, look to 141-17/141-19 for immediate resistance, the May 9 low at

142-15 of more consequence on any move higher. Initial support now from

140-22/140-16 protects the downside from another assault, the 76.4% Fibo retrace

level at 139-14 the next target below 140-05.

US EURODOLLAR TECHS: (M18) Break Above 6 Month Downtrend, Has 97.735-97.740 Next

*RES 4: 97.770 76.4% Fibo of 97.820-97.595

*RES 3: 97.735/740 61.8% of 97.820-97.595, Mar 27-28 highs 

*RES 2: 97.715 Hourly congestion May 14-15

*RES 1: 97.695 May 18 high

*PRICE: 97.675 @1046GMT

*SUP 1: 97.650 Hourly support

*SUP 2: 97.625 Congestion area Apr 18-May 3

*SUP 3: 97.585/595 Jun 29 2015 low, May 8 low

*SUP 4: 97.560 1.618 swing of 97.630-97.740

*COMMENTARY* Saw a move back above the 6 month falling resistance line last week

and this has moved lower by time this, to 97.590. Back above here encourages,

and we have subsequently seen a return towards 97.735-97.740. The former a 61.8%

Fibo retrace level, the latter the Mar 27-28 highs. Will need an eventual break

through here, before gains can be extended toward 97.770 next. Support 97.650

but it is 97.625 that currently protects against a 97.595 return.

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

[TOPICS: MTABLE]