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Price Signal Summary - Equities Remain Bearish And Volatile

MARKET INSIGHT
  • In the equity space, S&P E-minis remain vulnerable and a bearish threat remains present. Note though that price action is likely to trade in a volatile manner. The focus is on this year’s low of 4212.75, the Jan 24 low and the bear trigger. The 50-day EMA - at 4528.69 - marks the key resistance. EUROSTOXX 50 futures are recovering from today’s earlier low of 3874.00. The outlook remains bearish though and the clearance of a number of support levels this week highlight the current bearish threat. The focus is on 3844.00, May 13 2021 low (cont).
  • In FX, EURUSD remains above a key short-term support at 1.1280, the Feb 14 low. The broader outlook is positive and while 1.1280 holds, attention is on the next resistance at the Feb16 high of 1.1396. A break of this level would improve the outlook for bulls and expose 1.1495, the Feb 10 high and bull trigger. GBPUSD maintains a bullish short-term tone despite the pullback from Monday’s high. A resumption of gains would open 1.3662 next, Jan 20 high. The support to watch lies at 1.3487, Feb 15 low. USDJPY has traded below its 50-day EMA - at 114.74 - but has so far found support below this average. The next key short-term support to watch is 114.16, the Feb 2 low. The area between 114.74-16 represents a firm zone. A resumption of strength would refocus attention on the 116.34/35 key resistance, the Feb 10 / Jan 4 highs.
  • On the commodity front, Gold remains in an uptrend and maintains the current strong impulsive bull rally. Price is approaching the medium-term upside target of $1916.6, the Jun 1 2021 high and a key bull trigger. Note that the top of the bull channel drawn from the Aug 9 2021 low intersects at $1936.7. WTI futures remain in an uptrend and have rallied once again today. The contract has probed resistance at $95.82, Feb 14 high. This confirms a resumption of the uptrend and opens $98.24, 3.00 projection of the Dec 2 - 9 - 20 price swing.
  • In the FI space, Bund futures remain vulnerable and recent gains are likely a correction. The 20-day EMA has been probed however levels above the average are providing resistance - the EMA intersects at 166.84 today. The bear trigger is 164.34, the Feb 16 low and a break would expose the 164.00 handle. Trendline resistance drawn off the Dec 20 high intersects at 167.54 today. The trend condition in Gilts remains down although a corrective cycle is still in play. Price has traded above the 20-day EMA and this suggests potential for a climb towards the 122.00 handle and the 50-day EMA at 122.64. The latter is a key resistance.
Fixed Income Technical AnalysisForeign Exchange Technical AnalysisHomepagemarkets-real-timeBulletMarketsFixed Income BulletsForeign Exchange Bullets
Fixed Income Technical AnalysisForeign Exchange Technical AnalysisHomepagemarkets-real-timeBulletMarketsFixed Income BulletsForeign Exchange Bullets

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