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Price Signal Summary - Bund Futures Bull Cycle Still In Play

OUTLOOK
  • In the FI space, Bund futures recovered Friday, reinforcing a short-term bullish condition. A resumption of gains would signal scope for a climb towards 135.85, a Fibonacci retracement and the 136.00 handle. On the downside, key short-term support lies at the Apr 19 low of 133.10. This is the bear trigger and a break would instead reinstate a recent bearish theme instead.
  • Gilt futures traded higher in the early part of last week. A resumption of gains would refocus attention on the 20-day EMA at 102.03. This average represents a key short-term resistance where a break is required to highlight potential for a stronger rally. On the downside, key support and the bear trigger has been defined at 99.73. Clearance of this level would resume the downtrend that started Mar 20.

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