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Price Signal Summary - FI Space Remains Vulnerable

MARKET INSIGHT
  • In the equity space, S&P E-Minis are trading near recent highs. The contract remains above the 50-day EMA that intersects at 4406.25 today - the break of this EMA has improved bullish conditions. Scope is seen for a climb towards 4578.50, the Feb 9 high. Initial support is seen at 4352.15, the 20-day EMA. EUROSTOXX 50 futures traded higher earlier today and moved out of its recent range. This reinforces current bullish conditions and the contract is closing in on the 50-day EMA at 3873.40. This average represents an important resistance and if cleared, would further strengthen a bullish short-term theme.
  • In FX, EURUSD remains below last week’s high of 1.1137 (Mar 17). Trend signals continue to highlight a downtrend and the recent pullback signals a possible resumption of the bear cycle . An extension lower would open 1.0890, the Mar 9 low and 1.0806, the Mar 7 low and bear trigger. GBPUSD traded higher yesterday and through the 20-day EMA. Key short-term resistance is now seen at the 50-day EMA that intersects at 1.3349. A break of the average is required to suggest potential for a stronger recovery. Watch support at 1.3120, yesterday’s low. USDJPY maintains a bullish tone and has traded above 121.00. This week’s breach of the top of the bull channel, drawn from the Jun 1 2021 high and the psychological 120.00 handle, confirms a resumption of the uptrend. The focus is on 121.69, the Jan 29 2016 high.
  • On the commodity front, Gold continues to consolidate. Short-term conditions remain bearish following the recent pullback from $2070.4, Mar 8 high. Attention is on $1895.3, the 50-day EMA. The broader trend condition is bullish though and the recent pullback is considered corrective. Initial resistance to watch is at $1954.7, the Mar 15 high. A break of the 50-day EMA would be bearish and instead suggest scope for a deeper pullback. Oil markets have recovered from recent lows and traded higher this week, extending last week’s bounce. WTI sights are on $118.34, 76.4% of the Mar 7 - 15 downleg.
  • In the FI space, yields look set to continue rising. Bund futures have cleared the 160.00 handle this week, confirming a resumption of the downtrend. This opens 158.84 next, the Oct 22 2018 low (cont). Gilts have breached key support at 121.10, Feb 16 low. This opens 120.00 next and confirms a resumption of the broader downtrend. The bearish theme in Treasuries remains intact. The focus is on the 122-00 handle.
Fixed Income Technical AnalysisForeign Exchange Technical AnalysisHomepagemarkets-real-timeBulletMarketsFixed Income BulletsForeign Exchange Bullets
Fixed Income Technical AnalysisForeign Exchange Technical AnalysisHomepagemarkets-real-timeBulletMarketsFixed Income BulletsForeign Exchange Bullets

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