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Needle Still Points South


Yields Bounce as Equities Make New Monthly Highs


Heading North


Bull Rally Accelerates


Economists Survey Raises 2021 CPI Forecast To 4.9%

  • In the equity space, S&P E-minis continue to trade constructively and have cleared resistance at $4185.00, May 21 high. This opens 4238.25, May 10 high. Key trend support lies at 4029.25, May 13 low. EUROSTOXX 50 futures have traded higher too, breaching 4036.00, May 10 high. The move higher confirms a resumption of the uptrend and opens 4099.00,1.00 projection of the Mar - Jul - Oct 2020 price swing.
  • In the FX space, EURUSD strength persists to keep the uptrend in tact. The pair has cleared 1.2245 with sights set on 1.2285 next, Jan 8 high. GBPUSD is trading closer to recent highs and remains bullish. The focus is on 1.4237, Feb 24 high and this year's high print. USDJPY support is unchanged at 108.34, May 7 low. A bullish theme dominates while this support holds and attention is on 109.79, May 13 high. A break of 108.34 however would highlight a trendline break drawn off the Jan 6 low and risk a deeper pullback.
  • On the commodity front, Gold is consolidating but remains bullish. The focus is on $1892.7, 76.4% retracement of the Jan 6 - Mar 8 sell-off. Oil contracts have recovered from recent lows. Brent (N1) key resistance is at $70.24, May 18 high and the bull trigger. WTI (N1) bulls are eyeing$67.02, May 18 high.
  • In the FI space, Bunds (M1) is firmer as the short-term correction extends. The next resistance is 169.62, the 20-day EMA. The bear trigger is 168.29, May 19 low. Directional risk in Gilts (M1) is still skewed to the downside despite recent strength. The key support and bear trigger is 126.79, Mar 18 low. Key resistance is 128.80 High May 7.
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