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: (U18) May 31 Low At 113-207 The Bar To Further Recovery

*RES 4: 114-020 Hourly high May 30

*RES 3: 113-292 May 31 high

*RES 2: 113-257 Hourly recovery high May 31

*RES 1: 113-207 May 31 low

*PRICE: 113-157 @1118GMT

*SUP 1: 113-090 Intraday low

*SUP 2: 113-070 Initial rally high Jun 7, now support

*SUP 3: 113-027/035 May 25, Jun 7 lows

*SUP 4: 112-300 76.4% Fibo of 112-147/114-152

*COMMENTARY* Found support on Thursday from 113-035, just ahead of the May 25

low at 113-027. The subsequent recovery has been relatively swift, reaching back

up towards the May 31 low at 113-207. This seen as the bar to a better

correction of losses sustained since the 114-152 high of May 29. In the interim,

support comes from above 113-090/113-070, back below the latter will disappoint

and put further gains in abeyance.

US 10YR FUTURE TECHS: (U18) Recovers After Test To 119-045 Fibo Support

*RES 4: 120-240 Hourly recovery high May 30

*RES 3: 120-150/160 May 31 high, hourly high May 30

*RES 2: 120-050 Hourly high Jun 1

*RES 1: 120-005 Jun 7 high

*PRICE: 119-245 @1127GMT

*SUP 1: 119-145 Intraday low

*SUP 2: 119-110 Initial rally high Jun 7, now support

*SUP 3: 119-040/045 Jun 7 low, 61.8% Fibo of 117-300/121-030

*SUP 4: 118-300 May 24 low

*COMMENTARY* The recovery since the dip to 117-300 on May 17, resulted in a

sharp spike higher to 121-030 last week. Has subsequently seen a decent

pullback, as a result of some considerably overbought conditions but has found

support from around 119-045, a 61.8% Fibo retrace of those gains. The subsequent

recovery looks to correct some of that fall, 120-005/120-050 now the bar to a

further rise. Support now from 119-145/119-110.

US 30YR FUTURE TECHS: (U18) Correcting Some Of The Recent Losses From 145-28

*RES 4: 144-31 76.4% Fibo of 145-28/142-01

*RES 3: 144-13 61.8% Fibo of 145-28/142-01

*RES 2: 144-06 Jun 7 high

*RES 1: 143-31 Intraday high

*PRICE: 143-15 @1138GMT

*SUP 1: 143-01 Intraday low

*SUP 2: 142-19 Hourly highs Jun 6-7, now support

*SUP 3: 142-01 Jun 7 low

*SUP 4: 141-24/27 May 25 low, 61.8% of 139-11/145-28

*COMMENTARY* Finally found some support on Thursday at 142-01, thereby saving a

test to the key support situated between 141-31/141-24. The following recovery

has been impressive, resulting in a spike high to 144-06 yesterday. Some

overbought hourly conditions now being rectified, the day's 143-01 low as

initial support, 142-19 below. Loss here would caution again. Meanwhile,

143-31/144-06 becomes the bar to a higher correction of losses from 145-28.

US EURODOLLAR TECHS: (U18) 97.500/97.510 Support Has Held The Fall This Week

*RES 4: 97.680 Mar 28 high

*RES 3: 97.640 May 29 high

*RES 2: 97.615 May 30 high

*RES 1: 97.565/575 Hourly resistance

*PRICE: 97.540 @1140GMT

*SUP 1: 97.500/510 May 17-22 lows

*SUP 2: 97.475 Apr 25, May 8 lows

*SUP 3: 97.425 50% Fibo of 95.695-99.155

*SUP 4: 97.395 Broken 9 month resistance line

*COMMENTARY* Saw a move back above the 9 month falling resistance line earlier

last month, which has fallen by time to 97.395 this week and this has been the

precursor to some recovery. We have subsequently seen a rally back to 97.640 so

far, where the rally has stalled, the Mar 28 high at 97.680 the next resistance

of consequence higher. As a result, support from 97.575-97.555 has been lost,

although 97.510-97.500 provides a stronger base below.

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

[TOPICS: MTABLE]