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Price Signal Summary - Monitoring The Directional Triggers In Gilts

OUTLOOK
  • In the FI space, Bund futures remain closer to their recent lows and the latest shallow recovery appears to be a correction for now. A resumption of the recent sell-off would expose key support and the bear trigger at 131.23, the Feb 29 low. Clearance of this level would confirm a continuation of the downtrend that started late December last year. Initial firm resistance to watch is at 133.01, the 50-day EMA. A clear break of this average would be bullish.
  • Gilt futures are trading higher, marking an extension of the recovery from 98.05, the Mar 15 low. A continuation higher would expose key short-term resistance at 100.37, the Mar 13 low, where a break would strengthen any developing bullish theme. Key short-term support has been defined at 98.05, the Mar 15 low. A break would be bearish. For now, 98.05 and 100.37 mark the key short-term directional triggers.

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