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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.
MARKET INSIGHT
- In the equity space, S&P E-minis continue to defy gravity and have registered another all-time high. The focus is on 4687.32 next, 1.382 projection of Jul 19 - Aug 16 - Aug 19 price swing. EUROSTOXX 50 futures maintain a bullish tone. Attention is on 4371.00, 1.236 projection of Jul 19-Sep 6-Oct 6 2020 swing (cont)
- In FX, EURUSD remains below recent highs and the outlook is bearish. The move lower on Oct 29 - a bearish engulfing candle - highlights a failure to clear the 50-day EMA and means the bear channel top at 1.1686 today, remains intact. The channel is drawn off the Jun 1 high. The focus is on 1.1524, Oct 12 low and bear trigger. GBPUSD is softer. A deeper pullback would open 1.3544, the Oct 6 low and highlight a potential resumption of the downtrend. USDJPY remains below recent highs but above support at 113.42-00, the 20-day EMA and Oct 12 low respectively. A break would signal scope for a deeper pullback. The trend for now remains up.
- On the commodity front, Gold traded lower yesterday and breached $1772.0, the Oct 29 low. The break lower highlights a developing bearish risk and exposes support at $1760.4, Oct 18 low that was also probed. A clear break of this level would signal scope for a pullback towards $1721.7, Sep 29 low. Yesterday's sell-off in WTI resulted in a breach of $80.58, Oct 28 low and the contract cleared the 20-day EMA. This has opened the 50-day EMA at $77.10. Key resistance has been defined at $85.41, the Oct 25 high.
- In the FI space, short-term gains in Bund futures are considered corrective, however watch resistance at 169.83, Oct 27 high. A break would alter the picture and suggest scope for a stronger recovery. The focus in Gilts is on the potential double bottom reversal following last week's breach of 125.27, Oct 14 high. If correct, the pattern signals scope for a climb towards 126.39, 50.0% retracement of the Aug - Oct downleg. Support is at 124.25, Nov 1 low. Key support has been defined at 123.43, Oct 21 low.
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.
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