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Price Signal Summary - Bund and Gilt Futures Head South

MARKET INSIGHT
  • In the equity space, S&P E-minis remain vulnerable despite the recovery from Monday’s low. The sell-off late last week and earlier this week, signals potential for a deeper pullback. A resumption of weakness would open 4485.75, the Dec 3 low. Watch resistance at 4668.00, the Dec 17 high. EUROSTOXX 50 futures remain vulnerable too, having failed to hold onto last week’s high of 4234.00 on Dec 16 and despite the recent recovery. Monday’s bearish pressure has exposed the key support handle at 3980.00, the Nov 30 low and the bear trigger. On the upside, a clear break of the 20-day, at 4170.20, that has been probed would ease bearish pressure
  • In FX, EURUSD is still trading sideways. The pair remains below resistance at 1.1383, Nov 30 high where a break is required to signal potential for a stronger recovery. Support to watch lies at 1.1222, Dec 15 low and 1.1186, Nov 24 low. The latter is a key support and the bear trigger. GBPUSD failed to hold onto last week’s high of 1.3374 on Dec 16. The reversal lower highlights a potential resumption of the underlying downtrend and attention is on support at 1.3163, the Dec 8 low and the bear trigger. The USDJPY near-term directional triggers are; 114.26, the Dec 15 high and 113.14, Friday’s low. The resistance at 114.26 has been breached this morning and this opens 114.38 next, the 61.8% retracement of the Nov 24 - 30 downleg. The 76.4% level is at 114.81.
  • On the commodity front, last week’s channel break in Gold appears to have been a false one and the strong recovery from last week’s low of $1753.7, Dec 15 low suggests the yellow metal is reversing its recent downtrend. Watch resistance at $1815.6, the Nov 26 high. A breach would strengthen bullish conditions. Support is at $1772.2, the channel base. WTI futures traded lower Monday and despite the rebound from that day’s low, the contract remains vulnerable. A resumption of weakness would open $65.45, the Dec 6 low and more importantly expose key support at $62.26, the Dec 2 low. Key near-term resistance is seen at $73.13, the Dec 9 high and is just above the 50-day EMA at $73.06.
  • In the FI space, Bund futures have breached support at 173.40, the Dec 8 low. This also means that the price is trading back below the 20-day EMA. The break suggests scope for a deeper short-term pullback and has opened 172.70, the Nov 26 low. Gilts yesterday breached support at 126.34, Dec 16 low and the contract is trading below its 20-day EMA. The break lower places on hold a recent bullish focus and instead opens 124.94, the Nov 25 high and a gap low on the daily chart.
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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