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Price Signal Summary - EURUSD Bear Leg Extends

MARKET INSIGHT
  • In the equity space, the trend condition in S&P E-Minis remains up and short-term pullbacks are considered corrective. A deeper pullback though would allow an overbought condition to unwind. The support to watch is at the 20-day EMA which intersects at 4157.93. A resumption of gains would open 4345.75 next, 2.00 projection of the Jun 17 - 28 - Jul 14 price swing. The short-term uptrend in EUROSTOXX 50 futures remains intact and the current pullback is considered corrective. Attention is on resistance at 3840.00, the Jun 6 high. A break of this hurdle would strengthen bullish conditions. On the downside, initial firm support to watch is seen at the 20-day EMA which intersects at 3708.00.
  • In FX, EURUSD remains below last week’s 1.0368 high (Aug 10), and continues to trade lower. The recent move down means that the pair has failed to clear channel resistance. The bear channel is drawn from the Feb 10 high and intersects at 1.0290. Attention is on 1.0007, the Jul 15 low. Initial resistance is at 1.0205, the 20-day EMA. GBPUSD is weaker, having breached support at 1.2004, the Aug 5 low. The break lower signals scope for an extension and has opened 1.1760, the Jul 14 low and bear trigger. USDJPY continues to appreciate. The pair has traded above resistance at 135.58, the Aug 8 high. This strengthens a short-term bullish condition and signals scope for a climb towards 137.27, 76.4% retracement of the Jul 14 - Aug 2 downleg.
  • On the commodity front, Gold is trading lower, extending the pullback from last week’s high of $1807.9 (Aug 10). The yellow metal has failed to confirm a clear break of the 5-month downtrend and the break of support at $1754.4 Aug 3 low, signals scope for a deeper pullback towards $1711.7 next. Key resistance is $1807.9.In the Oil space, WTI futures remain vulnerable. This week’s move down has resulted in a print below support at $87.01, the Aug 5 low. This reinforces bearish conditions and a clear break of $87.01 would confirm a resumption of the downtrend. Attention is on $85.37, the Mar 15 low.
  • In the FI space, Bund futures continue to weaken and a bearish theme suggests scope for a continuation lower. The focus is on 152.43 next, 38.2% retracement of the Jun 16 - Aug 2 rally. Gilts remain vulnerable and have gapped lower today. The next objective is 112.24, 76.4% retracement of the Jun 16 - Aug 2 upleg.
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