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Price Signal Summary - EURUSD Reversal Signals Resumption Of Bear Trend

MARKET INSIGHT
  • In the equity space, S&P E-minis are trending higher once again and have cleared the 4600.00 handle. The focus is on 4650.60 1.236 projection of Jul 19 - Aug 16 - Aug 19 price swing. EUROSTOXX 50 futures have started the week on a firm note and have cleared key resistance at 4223.00, Sep 6 high and a key bull trigger. The break confirms a resumption of the underlying uptrend and opens 4290.50, 1.00 projection of the Jul 19 - Sep 6 - Oct 6 price swing.
  • In FX, EURUSD sold off sharply Friday signalling the end of the recent corrective cycle. The move lower highlights a failure to clear the 50-day EMA and means the bear channel top - a key resistance - at 1.1701 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 this morning. A deeper pullback would open 1.3544, the Oct 6 low. USDJPY remains below recent highs but maintains a bullish tone. Scope is seen for a climb towards 114.99, 1.50 projection of the Apr 23 - Jul 2 - Aug 4 price swing. The support zone to watch is 113.21-00, the 20-day EMA and Oct 12 low respectively.
  • On the commodity front, Gold is consolidating but maintains a positive short-term tone. Scope is seen for a climb towards $1834.0, the Sep 3 high. Initial support is at$1780.8, the 50-day EMA. WTI broader trend conditions are unchanged although futures remain below last week's high. Support to watch is at $80.58, Oct 28 low.
  • In the FI space, Bund futures sights are on 167.52 next, Mar 19 2020 low (cont) following Friday's sell-off and a fresh trend low print. Gilts breached resistance at 152.57 last week. This confirmed a double bottom reversal on the daily chart and signals scope for a climb towards 126.39, 50.0% retracement of the Aug - Oct downleg. Next support is at 124.11, Oct 26 low. Key support though has been defined at 123.43, Oct 21 low.
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Fixed Income Technical AnalysisForeign Exchange Technical AnalysisHomepagemarkets-real-timeBulletMarketsFixed Income BulletsForeign Exchange Bullets

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