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Price Signal Summary - FI Retraces Part Of Yesterday's Impulsive Wave

OUTLOOK
  • In the FI space, Bund futures rallied sharply higher Monday, extending Friday’s gains. The contract cleared a number of important retracement points and breached 136.00. Price has pierced 136.80, the 76.4% retracement of the Feb 2 - Mar 2 downleg. A clear break of this retracement would expose 138.00 and signal scope for a test of a key resistance at 138.79, the Feb 2 high. Price is moving in the opposite direction, so far today, the next support lies at 134.61, 38.2% retracement of the Mar 2 - 13 rally.
  • Gilt futures rallied through a host of Fibonacci projections Monday, reinforcing a strong bull cycle with firm momentum. The rally paves the way for 106.37 and 106.70 next, the 5.00 and 5.236 projection of the Feb 28 - Mar 6 - Mar 7 price swing. On the downside, yesterday’s 102.40 low is the first key short-term support to watch. At this stage, a break of 102.40 is required to signal a reversal. Initial support is at 103.53, 38.2% retracement of the entire rally from Feb 28.

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