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Price Signal Summary - Equity Space Remains Vulnerable

MARKET INSIGHT
  • In the equity space, S&P E-minis remain vulnerable and moving average studies continue to highlight a bearish trend. Furthermore, the recent inability to remain above the 50-day EMA - at 4528.69 - reinforces a bearish threat. A deeper pullback would expose 4212.75, the Jan 24 low. EUROSTOXX 50 futures remain bearish and the contract has failed to hold onto today’s gains. The contract has also recently failed to remain above the 50-day EMA and this strengthens the case for bears. The focus is on support at 3990.50, Jan 24 low. A break of this level would open 3980.00, the Nov 30 2021 low.
  • In FX, EURUSD remains above 1.1280, the Feb 14 low. The broader outlook is modestly 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. A resumption of gains would open 1.3662 next, Jan 20 high. Support to watch lies at 1.3487, Feb 15 low. USDJPY continues to trade closer to last week’s lows. The previous bullish outlook has faded for now and price is approaching the 50-day EMA at 114.74. This average represents an important short-term support and a clear break would expose 114.16, the Feb 2 low. 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. The yellow metal's gains puts gold at the best levels since June last year and keeps the trend direction pointed higher. Resistance at $1881.6 has given way, setting the medium-term upside target to $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 $1935.8.
  • In the FI space, Bund futures remain vulnerable and have found resistance just ahead of the 20-day EMA at 166.90. The bear trigger is 164.34, the Feb 16 low and a break would expose the 164.00 handle. The trend condition in Gilts remains down, but this market is currently still in a corrective rally. 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 122.69.
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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