Free Trial
PRECIOUS METALS

Gold/Silver Ratio Corrects Off Multi-year High

EQUITY TECHS

E-MINI S&P (M2): Corrective Bounce

SCANDIS

NOKSEK nearing key support

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

Price Signal Summary - Bear Flag Breakout In EURUSD

MARKET INSIGHT
  • In the equity space, S&P E-Minis remain vulnerable and short-term gains are considered corrective. This week’s continuation lower, delivering fresh cycle lows, reinforces the primary bearish trend condition and signals scope for a continuation lower. The next objective is 3843.25, the Mar 25 2021 low (cont). In terms of resistance, the key short-term level is at 4303.50, the Apr 26/28 high. Initial resistance is at 4099.00, the May 9 high. EUROSTOXX 50 futures outlook remains bearish and short-term gains are also considered corrective. Recent weakness has resulted in a breach of support at 3608.00, Apr 27 low and of 3551.60, 61.8% retracement of the Mar 7 - 29 rally. This has exposed 3458.90 next, the 76.4% retracement. Initial resistance is at 3664.80, the 20-day EMA.
  • In FX, EURUSD traded lower Thursday and cleared support at 1.0472, Apr 28 low. The break lower confirms a bear flag breakout and a resumption of the primary downtrend. The focus is on 1.0341, the Jan 3 2017 low and a key support. GBPUSD remains weak following this week’s extension of the downtrend. The focus is on 1.2162 next, the May 22 2020 low. The USDJPY primary uptrend remains intact and this week’s move lower is likely a correction. Initial support has been defined at 127.52, yesterday’s low. A resumption of gains would refocus attention on the bull trigger at 131.35, May 9 high. A break would open 131.96, the 1.00 projection of the Feb 24 - Mar 28 - 31 price swing.
  • On the commodity front, Gold remains vulnerable following this week’s resumption of the downtrend. Further weakness is likely and attention is on the $1800.0 handle next ahead of $1780.4, the Jan 28 low. In the Oil space, a bearish threat in WTI futures remains present, despite the recovery from Wednesday’s low of $98.20. Key short-term resistance is at $111.37, the May 5 high. $98.20 and $111.37 are viewed as important short-term directional triggers.
  • In the FI, Bund futures remain in a downtrend. This week’s gains are considered corrective. A fresh cycle low on Monday reinforced the bearish condition and confirmed, once again, an extension of the bearish price sequence of lower lows and lower highs. A resumption of weakness would refocus attention on 150.15, the 0.764 projection of the Mar 7 - 29 - Apr 4 price swing. Firm trend resistance to watch is 156.00, Apr 28 high. The broader trend condition in Gilts remains down. However, yesterday’s move higher resulted in a break of resistance at 119.79, the Apr 25 high. This signals potential for a stronger short-term corrective phase and opens 121.84 next, 50.0% of the Mar 1 - May 9 bear leg. On the downside, key support has been defined at 116.87, the May 9 low. This is also the bear trigger.
463 words

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.
  • In the equity space, S&P E-Minis remain vulnerable and short-term gains are considered corrective. This week’s continuation lower, delivering fresh cycle lows, reinforces the primary bearish trend condition and signals scope for a continuation lower. The next objective is 3843.25, the Mar 25 2021 low (cont). In terms of resistance, the key short-term level is at 4303.50, the Apr 26/28 high. Initial resistance is at 4099.00, the May 9 high. EUROSTOXX 50 futures outlook remains bearish and short-term gains are also considered corrective. Recent weakness has resulted in a breach of support at 3608.00, Apr 27 low and of 3551.60, 61.8% retracement of the Mar 7 - 29 rally. This has exposed 3458.90 next, the 76.4% retracement. Initial resistance is at 3664.80, the 20-day EMA.
  • In FX, EURUSD traded lower Thursday and cleared support at 1.0472, Apr 28 low. The break lower confirms a bear flag breakout and a resumption of the primary downtrend. The focus is on 1.0341, the Jan 3 2017 low and a key support. GBPUSD remains weak following this week’s extension of the downtrend. The focus is on 1.2162 next, the May 22 2020 low. The USDJPY primary uptrend remains intact and this week’s move lower is likely a correction. Initial support has been defined at 127.52, yesterday’s low. A resumption of gains would refocus attention on the bull trigger at 131.35, May 9 high. A break would open 131.96, the 1.00 projection of the Feb 24 - Mar 28 - 31 price swing.
  • On the commodity front, Gold remains vulnerable following this week’s resumption of the downtrend. Further weakness is likely and attention is on the $1800.0 handle next ahead of $1780.4, the Jan 28 low. In the Oil space, a bearish threat in WTI futures remains present, despite the recovery from Wednesday’s low of $98.20. Key short-term resistance is at $111.37, the May 5 high. $98.20 and $111.37 are viewed as important short-term directional triggers.
  • In the FI, Bund futures remain in a downtrend. This week’s gains are considered corrective. A fresh cycle low on Monday reinforced the bearish condition and confirmed, once again, an extension of the bearish price sequence of lower lows and lower highs. A resumption of weakness would refocus attention on 150.15, the 0.764 projection of the Mar 7 - 29 - Apr 4 price swing. Firm trend resistance to watch is 156.00, Apr 28 high. The broader trend condition in Gilts remains down. However, yesterday’s move higher resulted in a break of resistance at 119.79, the Apr 25 high. This signals potential for a stronger short-term corrective phase and opens 121.84 next, 50.0% of the Mar 1 - May 9 bear leg. On the downside, key support has been defined at 116.87, the May 9 low. This is also the bear trigger.