Free Trial

Price Signal Summary – Equities reinforce bullish S/T condition

MARKET INSIGHT
  • S&P E-Minis traded higher once again Friday. The climb reinforces short-term bullish conditions and the extension maintains the positive price sequence of higher highs and higher lows. EUROSTOXX 50 traded higher Friday to confirm a resumption of the current uptrend. The move higher maintains the bullish price sequence of higher highs and higher lows and attention is on resistance at 3840.00, the Jun 6 high.
  • EURUSD remains below last week’s 1.0368 high. The pullback highlights - for now - a failure to deliver a clear break of the bear channel resistance, currently at 1.0326. AUDUSD is holding on to the bulk of its recent gains. Last week’s break of 0.7047, Aug 1 high, confirmed a resumption of the uptrend that started Jul 14 and sets the scene for an extension. EURJPY remains below last Wednesday’s high of 138.40 and below the 50-day EMA. The recovery from 133.40, Aug 2 low, is likely a correction.
  • Gold maintains a firmer tone following last week’s climb above trendline resistance at $1794.6. The trendline is drawn from the Mar 8 high and the break represents an important technical breach plus highlights a stronger reversal of the 5-month downtrend. WTI futures traded higher late last week and cleared $92.65, the Aug 9 high. The 20-day EMA has also been pierced and this does suggest scope for a stronger near-term bounce, potentially towards the 50-day EMA, at $97.74.
  • Bund futures traded lower again Friday. The current retracement is still considered corrective and the short-term trend direction remains up. Moving average studies are in a bull mode condition and the bullish price sequence of higher highs and higher lows is intact. Gilt futures traded lower again Friday. Last week’s extension lower has resulted in a break of trendline support drawn from the Jun 16 low. The current pullback is still considered corrective and the trend outlook remains bullish.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.