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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 failed to hold onto Monday’s high and the contract has traded lower since. The outlook remains bullish though and the focus is on the all-time high print of 4735.00 on Nov 22. The 50-day EMA at 4580.29 is the key pivot support. EUROSTOXX 50 futures have traded below support at 4134.50 and an extension would expose 4053.50, the Dec 3 low. Major support and the bear trigger is at 3995.00, Nov 30 low. On the upside, clearance of 4289.00, Dec 8 high would signal a resumption of the recent bull theme.
- In FX, EURUSD continues to consolidate and trade below resistance at 1.1383, Nov 30 high. A break of this hurdle is required to signal potential for a stronger short-term recovery. The recent consolidation appears to be a triangle formation. Triangles are continuation patterns and this reinforces the underlying bear trend. Support levels to watch are; 1.1228, the Dec 7 low and 1.1186, Nov 24 low and the bear trigger. GBPUSD trend conditions remain bearish. Scope is seen for weakness towards 1.3135, the Dec 11 2020 low. 1.3313 is resistance, the 20-day EMA. The USDJPY bullish engulfing candle on Dec 6 continues to highlight a potential reversal at 112.53, the Nov 30 low. A break higher would open 114.38, 61.8% of the Nov 24 - 30 downleg and further out, 115.52, the Nov 24 high. Key support is unchanged at 112.53.
- On the commodity front, Gold traded lower yesterday and maintains a weaker tone. The yellow metal is challenging the base of its bull channel drawn from the Aug 9 low. The base intersects at $1768.0. A clear breach of this line and of $1762.0, Dec 2 low would strengthen the bearish theme and open$1746,0 the Oct 6 low. The trend outlook in WTI futures have traded lower this week. A deeper retracement would signal scope for weakness towards support at $65.60, the Dec 3 low.
- In the FI space, Bund futures remain above the 20-day EMA, at 173.70 today. Last week’s high of 175.02 is the bull trigger where a break would confirm a resumption of the uptrend. A move below the 20-day EMA would threaten the trend and signal a reversal. The Gilts trend outlook remains bullish and short-term dips are considered corrective. The focus is on 128.00 next, the Aug 31 high. Initial support to watch lies at 126.67, Dec 10 low.
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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