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Price Signal Summary - Bund Futures Retain A Bullish Tone

OUTLOOK
  • In the FI space, Bund futures remain in an uptrend and the contract has traded higher today to confirm a resumption of the bull cycle. Price has also recently cleared the 20-day EMA - a positive development. Sights are on 140.48, 76.4% of the Dec 7 - Jan 3 bear leg. On the downside, initial firm support is at 137.53, the Jan 16 low.
  • Gilt futures retain a bullish tone. The contract recently cleared resistance at 102.78, the Jan 6 high, to maintain the current price sequence of higher highs and higher lows. Attention is on 105.20, the 76.4% retracement of the Nov 24 - Dec 28 bear leg. Clearance of this level would signal scope for a climb towards 106.00.

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