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) Focus Returns To 113-070 Support

*RES 4: 113-292 May 31 high

*RES 3: 113-257 Hourly recovery high May 31

*RES 2: 113-187/202 Jun 8, Jun 7 highs

*RES 1: 113-145 Hourly resistance

*PRICE: 113-075 @1002GMT

*SUP 1: 113-067/070 Intraday low, initial rally high Jun 7

*SUP 2: 113-027/035 May 25, Jun 7 lows

*SUP 3: 112-300 76.4% Fibo of 112-147/114-152

*SUP 4: 112-147 May 17 low

*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 around 113-070, back below the latter will disappoint and put

further gains in abeyance.

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

*RES 4: 120-150/160 May 31 high, hourly high May 30

*RES 3: 120-050 Hourly high Jun 1

*RES 2: 119-305/005 Jun 8 high

*RES 1: 119-230 Hourly resistance

*PRICE: 119-130 @1009GMT

*SUP 1: 119-110 Initial rally high Jun 7, now support

*SUP 2: 119-040/045 Jun 7 low, 61.8% Fibo of 117-300/121-030

*SUP 3: 118-300 May 24 low

*SUP 4: 118-217 76.4% Fibo of 117-300/121-030

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

sharp spike higher to 121-030 late last month. 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 from 119-110 now protects the downside.

US 30YR FUTURE TECHS: (U18) Pullback Testing Mettle Of 142-19 Support

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

*RES 3: 144-06/13 Jun 7 high, 61.8% Fibo of 145-28/142-01

*RES 2: 143-31 Jun 8 high

*RES 1: 143-15 Hourly resistance

*PRICE: 142-24 @1020GMT

*SUP 1: 142-18/19 Jun 11 low, hourly highs Jun 6-7

*SUP 2: 142-01/03 Jun 7 low, 1% volatility band

*SUP 3: 141-24/27 May 25 low, 61.8% of 139-11/145-28

*SUP 4: 140-28 76.4% Fibo of 139-11/145-28

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

a test to the key support situated between 141-27/141-24. The following recovery

has been impressive, resulting in a spike high to 144-06 but some overbought

hourly conditions now being rectified, with onus on 142-18/142-19. Loss here

would caution again. Meanwhile, 143-15/143-31 becomes the bar to 144-13 and a

higher correction of losses from 145-28.

US EURODOLLAR TECHS: (U18) Focus Remains On 97.500/97.510 Support 

*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: 97.515 @1025GMT

*SUP 1: 97.500/510 May 17-22, Jun 11 lows

*SUP 2: 97.475 Apr 25, May 8 lows

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

*SUP 4: 97.370 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 97.370 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]