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Price Signal Summary - Downtrend In Bunds Remains Intact

OUTLOOK
  • In the FI space, Bund futures remain bearish and the contract has breached support at 129.72, the Aug 14 low and a key bear trigger. The break reinforces a bearish theme and confirms a resumption of the primary downtrend. The focus is on the 129.00 handle next. Key short-term resistance has been defined at 131.49, the Sep 14 high. Initial firm resistance is at 130.73, the 20-day EMA.
  • Gilt futures yesterday breached resistance at 96.49, the Sep 14 high. The break of this hurdle confirms a resumption of the bull cycle that started Aug 17 and this opens the 97.00 handle. Key short-term support has been defined at Monday’s 94.64 low. A reversal lower and a break of this support would threaten the bullish condition and expose 94.05, the Sep 11 low.

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