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Price Signal Summary - Bullish Candle In WTI Highlights Potential Short-Term Base

MARKET INSIGHT
  • In the equity space, S&PE-Minis remain vulnerable. Yesterday’s low of 3723.75 represents an important short-term support. A break would strengthen the bearish threat and expose 3639.00, the Jun 17 low and bear trigger. A break of 3950.00, Jun 28 high, is still required to signal potential for a stronger bullish reversal. EUROSTOXX50 futures continue to trade above 3343.00, the Jul 5 low. The trend outlook is bearish. The breach on Jul 5 of 3384.00, Jun 16 low, reinforces current conditions and confirmed a resumption of the broader downtrend. The focus is on 3321.30, 50.0% of the major 2020 - 2021 upleg. Initial resistance to watch is 3504.00, the Jul 8 high.
  • In FX, EURUSD trend conditions remain bearish and the pair resumed its slide Thursday. Support at parity and 0.9973, the base of the bear channel drawn from the Feb 10 high, were breached Thursday. This strengthens the current bearish case and attention turns to 0.9944, 1.618 projection of the Jun 9 - 15 - 27 price swing. GBPUSD remains vulnerable and the pair traded to a fresh trend low again on Thursday. The focus is on 1.1673, 1.00 projection of the May 27 - Jun 14 - 16 price swing. USDJPY resumed its uptrend on Thursday. Sights are on 139.48, 1.00 projection of the Jun 16 - 22 - 23 price swing and the 140.00 psychological handle.
  • On the commodity front, Gold remains in a downtrend and traded to a fresh trend low on Thursday. The break marks a resumption of the broader downtrend and opens $1690.6 next, the Aug 9 2021 low. In the Oil space, WTI futures remain in a downtrend however the recovery from yesterday’s low highlights a potential short-term base. In pattern terms, yesterday was a hammer candle formation - a potential short-term reversal signal. Gains would be considered corrective. On the downside, sub $90.56 levels would resume the downtrend. First resistance is $97.96, the Jul 13 high.
  • In the FI space, a short-term bull cycle in Bund futures remains in play and the contract has traded to a fresh trend high today. The focus is on the 154.00 handle. Trend conditions in Gilts remain bullish and scope is seen for a climb to 117.48, 1.236 projection of the Jun 16 - 24 - 29 price swing. Initial firm support to watch lies at 114.08, the Jul 8 low.

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