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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 maintain this week’s bull cycle and the contract has traded higher again today. Short-term gains are still considered corrective. The primary trend direction is down and the focus is on 3600.00 next. Initial resistance to watch is at 3843.00, Jun 15 high. EUROSTOXX 50 futures are consolidating and continue to trade closer to recent lows. The trend outlook is bearish and attention is on the 3300.00 handle next. 3567.00 is first resistance, Jun 16 high.
- In FX, EURUSD is unchanged. Short-term gains are still considered corrective and the primary trend direction is down. The focus is on weakness towards 1.0350, May 13 low and the bear trigger. Key channel resistance intersects at 1.0645 today - the channel is drawn from the Mar 10 high and a break is required to reverse the short-term direction. GBPUSD is in consolidation mode. The short-term outlook is bearish and the focus is on 1.1934, Jun 14 low and bear trigger. Resistance to watch is 1.2406, the Jun 16 high. USDJPY remains bullish and this week’s gains confirmed a resumption of the uptrend and opens 136.88 next, the Oct 30 1998 high. Short-term pullbacks are considered corrective, support to watch is at 133.22, the 20-day EMA. Keep an eye on EURJPY, price action over the past 3-sessions is a concern for bulls. A 3-day candle pattern - evening star reversal - was confirmed at yesterday’s close. This is a strong reversal and warns of a deeper pullback near-term. The next support to watch is 140.75, the 20-day EMA. A break would signal scope for a deeper pullback and also suggest scope for Yen strength that may result in a deeper USDJPY correction. Key resistance is at 144.25, the Jun 8 high and yesterday’s peak.
- On the commodity front, Gold maintains a bearish tone. The focus is on $1787.0, May 16 low where a break would resume the downtrend. Key trendline resistance is at $1876.6. The trendline is drawn from the Mar 8 high and a break would signal a short-term reversal. In the Oil space, WTI futures remain vulnerable following this week’s move lower and break of the 50-day EMA. This has opened $100.66, the May 19 low. A breach of this level would pave the way for a move towards $95.47, the May 11 low.
- In the FI space, Bund futures traded higher yesterday and cleared the 20-day EMA. The break strengthens short-term bullish conditions and signals scope for a stronger corrective recovery towards 150.06, 61.8% retracement of the May 12 - Jun 16 bear leg. Gains are still considered corrective. Gilts rallied yesterday and also cleared the 20-day EMA. This signal scope for a stronger short-term recovery and has opened 155.55, the Jun 6 high.
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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