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Price Signal Summary - Bund Trade Through Resistance At The 20-Day EMA

MARKET INSIGHT
  • In the equity space, S&P E-Minis continue to trade above recent lows and short-term gains are still considered corrective. The primary trend direction is down, highlighted by moving average studies that remain in bear mode condition and recent fresh cycle lows. The focus is on 3600.00 next. Initial resistance to watch is at 3843.00, the Jun 15 high. EUROSTOXX 50 futures continue to trade closer to recent lows. The trend outlook remains bearish and attention is on the 3300.00 handle next. 3567.00 is first resistance, Jun 16 high.
  • In FX, recent EURUSD short-term gains are still considered corrective and the focus is on weakness towards 1.0350, May 13 low and a bear trigger. Key channel resistance intersects at 1.0654 today - the channel is drawn from the Mar 10 high and a break is required to reverse the short-term direction. GBPUSD continues to trade above last week’s low. The outlook remains bearish and the focus is on 1.1934, Jun 14 low and a short-term bear trigger. Resistance to watch is unchanged at 1.2406, Jun 16 high. USDJPY remains bullish. The pair broke to new cycle highs Tuesday, confirming a resumption of the primary uptrend to maintain the bullish price sequence of higher highs and higher lows. The focus is on 136.88 next, the Oct 30 1998 high. A bull channel is evident on the daily chart - drawn from the Mar 4 low. The top, at 139.27, is an objective further out.
  • On the commodity front, Gold is consolidating but a bearish threat remains present. The focus is on $1787.0, May 16 low where a break would resume the downtrend. Key trendline resistance is at $1879.1. The trendline is drawn from the Mar 8 high and a break would signal a short-term reversal. In the Oil space, WTI futures remain vulnerable and continue to trade below the 50-day EMA. This week’s break lower has opened $100.66, the May 19 low. A breach of this level would pave the way for a move towards $95.47, the May 11 low.
  • In the FI space, Bund futures are trading higher this morning and have breached resistance at 147.34, the 20-day EMA. The break strengthens short-term bullish conditions and signals scope for a stronger corrective recovery towards 148.51, Jun 10 high. On the downside, initial support to watch is at 142.56, Jun 17 low. Note that short-term gains are still considered corrective. Gilts are rallying this morning and are approaching resistance at 113.78, the 20-day EMA and the next key short-term resistance. A break would signal scope for a stronger short-term correction.
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  • In the equity space, S&P E-Minis continue to trade above recent lows and short-term gains are still considered corrective. The primary trend direction is down, highlighted by moving average studies that remain in bear mode condition and recent fresh cycle lows. The focus is on 3600.00 next. Initial resistance to watch is at 3843.00, the Jun 15 high. EUROSTOXX 50 futures continue to trade closer to recent lows. The trend outlook remains bearish and attention is on the 3300.00 handle next. 3567.00 is first resistance, Jun 16 high.
  • In FX, recent EURUSD short-term gains are still considered corrective and the focus is on weakness towards 1.0350, May 13 low and a bear trigger. Key channel resistance intersects at 1.0654 today - the channel is drawn from the Mar 10 high and a break is required to reverse the short-term direction. GBPUSD continues to trade above last week’s low. The outlook remains bearish and the focus is on 1.1934, Jun 14 low and a short-term bear trigger. Resistance to watch is unchanged at 1.2406, Jun 16 high. USDJPY remains bullish. The pair broke to new cycle highs Tuesday, confirming a resumption of the primary uptrend to maintain the bullish price sequence of higher highs and higher lows. The focus is on 136.88 next, the Oct 30 1998 high. A bull channel is evident on the daily chart - drawn from the Mar 4 low. The top, at 139.27, is an objective further out.
  • On the commodity front, Gold is consolidating but a bearish threat remains present. The focus is on $1787.0, May 16 low where a break would resume the downtrend. Key trendline resistance is at $1879.1. The trendline is drawn from the Mar 8 high and a break would signal a short-term reversal. In the Oil space, WTI futures remain vulnerable and continue to trade below the 50-day EMA. This week’s break lower has opened $100.66, the May 19 low. A breach of this level would pave the way for a move towards $95.47, the May 11 low.
  • In the FI space, Bund futures are trading higher this morning and have breached resistance at 147.34, the 20-day EMA. The break strengthens short-term bullish conditions and signals scope for a stronger corrective recovery towards 148.51, Jun 10 high. On the downside, initial support to watch is at 142.56, Jun 17 low. Note that short-term gains are still considered corrective. Gilts are rallying this morning and are approaching resistance at 113.78, the 20-day EMA and the next key short-term resistance. A break would signal scope for a stronger short-term correction.