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Price Signal Summary - Move Lower In Gilts Exposes Key Support

OUTLOOK
  • In the FI space, Bund futures maintain a softer tone following last week’s move lower. However, for now the latest recovery is intact and the contract is trading closer to its recent highs. Price has breached resistance at 134.67, the Jun 7 high and attention is on 134.95, the Jun 6 high. A break would expose key short-term resistance at 135.85, the Jun 1 high. On the downside, a stronger reversal lower open 132.12, May 26 low and bear trigger.
  • Gilt futures remain below its recent highs and a bearish theme is intact. Moving average studies are in a bear-mode position highlighting a downward trendline market. Yesterday’s move lower reinforces current conditions and the contract is weaker again today. The bear trigger is 94.21, the May 26 low. Clearance of this level would open the 94.00 handle next. Initial firm resistance is at 96.63, high Jun 9.

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