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Price Signal Summary - Bund Futures Remain Soft

OUTLOOK
  • In the FI space, Bund futures ended last week’s session on a softer note and price is trading lower today. The contract is through the 20-day EMA, at 135.70, and has breached key short-term support at 134.70, the Mar 31 low. The break opens 133.33 next, the Mar 15 low. For bulls, a move above 138.09, the Apr 6 high, is required to reinstate the recent bullish theme. Initial resistance is seen at 135.70.
  • A short-term bearish theme in Gilt futures remains in play and Friday’s move lower reinforces this theme. The contract has breached support at 102.74, the Mar 20 low and a bear trigger. The break paves the way for an extension to 102.00 (pierced) and 101.12, the 76.4% retracement of the Feb 28 - Mar 20 rally. On the upside, key resistance is at 104.97, the Apr 6 high. Initial firm resistance is seen at 103.58, the 20-day EMA.

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