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Price Signal Summary - Bonds Head South Once Again

MARKET INSIGHT
  • In the equity space, S&P E-minis have failed to hold above the 50-day EMA - at 4561.44 today. This average continues to provide a firm resistance and a clear breach of it is required to suggest scope for a stronger rally that would open 4671.75 initially, Jan 18 high. Note that yesterday’s candle pattern is a bearish engulfing, signalling a potential top. Watch support at 4438.50, Feb 4 low. EUROSTOXX 50 futures have failed to hold above the 50-day EMA - at 4196.30 today. The average continues to represent a key resistance point. A clear break of it would suggest scope for a stronger recovery that would open 4324.50, Jan 13 high. The shift lower however is bearish and an extension would refocus attention on 3990.50, Jan 24 low.
  • In FX, EURUSD is trading in a more volatile manner near its recent highs. Thursday’s high of 1.1495 marks initial resistance where a break is required to signal a resumption of the uptrend. 1.1495 also coincides with the March 2020 high. Key short-term support is seen at 1.1326, the top of the former channel drawn from the Jun 1 2021 high. GBPUSD maintains its short-term bullish theme although the pair is trading in a more volatile manner. The focus is on 1.3662 next, Jan 20 high. Support lies at 1.3491, Feb 7 low. USDJPY is closing in on key resistance at 116.35, the Jan 4 high and bull trigger. A clear break of this hurdle would confirm a resumption of the uptrend and pave the way for a climb towards 117.08, 2.00 projection of the Apr 23 - Jul 2 - Aug 4 price swing.
  • On the commodity front, Gold maintains this week’s bullish theme despite the pullback from yesterday’s high. A continuation higher would expose firmer resistance and a bull trigger at $1853.9, Jan 25 high. WTI futures remain in a clear uptrend however the contract has entered in a corrective cycle having pulled back from recent highs. The focus is on a climb towards $94.13 next, 2.618 projection of the Dec 2 - 9 - 20 price swing. Support to watch is at $86.34, the Jan 31 low.
  • In the FI space, Bund futures remain vulnerable and the contract delivered a fresh trend low on Thursday. The focus is on the 164.00 handle. Gilts resumed its downtrend yesterday and breached the 120.00 psychological handle. The focus is on 119.36, Oct 10, 2018 low (cont).
Fixed Income Technical AnalysisForeign Exchange Technical AnalysisHomepagemarkets-real-timeBulletMarketsFixed Income BulletsForeign Exchange Bullets
Fixed Income Technical AnalysisForeign Exchange Technical AnalysisHomepagemarkets-real-timeBulletMarketsFixed Income BulletsForeign Exchange Bullets

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