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Price Signal Summary - Gilts Test Key Short-Term Resistance

OUTLOOK
  • In the FI space, Bund futures have continued to trend down. The contract has breached support at 129.72, the Aug 14 low and a key bear trigger. The break confirms a resumption of the primary downtrend. The focus is on 129.30 (tested), a 1.00 projection of the Jul 19 - Aug 4 - Aug 8 price swing. A break would open the 129.00 handle. Initial firm resistance is at 130.81, the 20-day EMA.
  • Gilt futures have recovered from yesterday’s low and have tested resistance at 96.49, the Sep 14 high. A clear break of this hurdle is required to confirm a resumption of the bull cycle that started Aug 17 and this would open the 97.00 handle. Key short-term support has been defined at Monday’s 94.64 low.

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