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Price Signal Summary - Bund Trend Needle Is Still Pointing South

OUTLOOK
  • In the FI space, the broader bearish theme in Bund futures remains intact. Attention is on 135.52, the Sep 28 low and key support. This level was probed on Oct 12, a clear break would confirm a resumption of the downtrend and open the 135.00 handle. Resistance is at 138.58 the 20-day EMA.
  • The primary trend direction in Gilt futures is down with moving average studies remaining in a bear mode position. Initial resistance to watch is 97.33, the 20-day EMA. The average has been pierced and the contract did close above it on Tuesday. A clear break would suggest scope for a stronger corrective bounce towards 100.92, the Oct 4 high and key resistance. 90.38, Oct 12 low, is the bear trigger.

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