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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 remain vulnerable despite today’s bounce. A bearish theme follows last week’s failure to hold above the 50-day EMA - at 4550.89 today. The Feb 10 candle pattern was a bearish engulfing reversal, signalling a potential top and remains in play. A deeper pullback would expose 4212.75. EUROSTOXX 50 futures traded lower yesterday, extending the reversal from last Thursday’s high. The contract has also recently failed to remain above the 50-day EMA. This reinforces a broader bearish threat and exposes support at 3990.50, Jan 24 low. A break of this level would open 3980.00, the Nov 30 2021 low.
- In FX, EURUSD traded lower Monday, resulting in a breach of support at the 1.1315 bear channel top. A continuation lower together with a breach of the next support at 1.1267, Feb 2 low, would signal scope for a deeper retracement of recent gains. On the upside, key short-term resistance is unchanged at last Thursday’s high of 1.1495. GBPUSD continues to consolidate in a range. A resumption of gains would open 1.3662 next, Jan 20 high. Support to watch lies at 1.3491, Feb 7 low. USDJPY attention is on key resistance at 116.35, the Jan 4 high and bull trigger. A clear break of this hurdle would confirm a resumption of the uptrend. Support to watch is at 114.65, the 50-day EMA.
- On the commodity front, Gold has continued to appreciate and add to last week’s gains. The yellow metal has cleared resistance at $1853.9, Jan 25 high and today has traded above $1877.2, the Nov 16 high. This reinforces current bullish conditions and suggests scope for a stronger climb within the bull channel drawn off the Aug 9 low. The focus is on $1903.8, the Jun 8 2021 high. WTI futures remain in an uptrend. The continuation higher also maintains the bullish price sequence of higher highs and higher lows. The focus is on $98.24 next, 3.00 projection of the Dec 2 - 9 - 20 price swing.
- In the FI space, Bund futures appear vulnerable and the downtrend remains firmly intact. The focus is on the 164.00 handle. The Gilts trend needle still points south and the contract has delivered another fresh cycle low today of 119.39. Price is approaching the 119.36 level, Oct 10, 2018 low (cont). A break would open 119.06, the 2.500 projection of the Jan 13 - 19 - 24 price swing.
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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