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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 following Friday’s sharp sell-off. Attention is on the 50-day EMA at 4567.25. This average has in the past proved to be a reliable support and represents a key pivot level. While it holds, recent weakness is considered a correction. A clear break though would strengthen bearish conditions. EUROSTOXX 50 futures also sold off sharply Friday and despite currently trading above last week’s low, still appears vulnerable. A resumption of weakness would open 4004.00, Oct 12 low.
- In FX, EURUSD objectives remain; 1.1185 Jul 1, 2020 low and 1.1128, 1.764 projection of the Jan 6 - Mar 31 - May 25 price swing. For now, the pair continues to strengthen as the correction extends. Resistance to watch is 1.1374, Nov 18 high and the 20-day EMA. GBPUSD continues to consolidate. Trend signals remain bearish and the next objective is 1.3216, 1.236 projection of the Sep 14 - 29 - Oct 20 price swing. USDJPY remains under pressure following Friday sharp sell-off and has probed support at 112.73, Nov 9 low. A clear break would strengthen the bearish case. Initial resistance is at 114.12, the 20-day EMA.
- On the commodity front, Gold remains inside its recent range. The short-term outlook is bearish within the bull channel drawn from the Aug 9 low. Attention is on the channel base, at $1758.8 today. WTI futures reversed course Friday and have continued to trade lower this week. The recent break of a number of support levels suggest scope for a continuation lower short-term. The focus is on $66.21, 76.4% of the Aug 23 - Oct 25 rally.
- In the FI space, Bund futures continue to recover from recent lows. Resistance at 172.57, Nov 22 high has been probed. A break would open 172.95, 76.4% retracement of the Aug - Nov sell-off. Key support is at 170.31, Nov 24 low. Gilts rallied Friday and the contract maintains a firmer tone. Futures have cleared resistance at 126.23, high Nov 9 and attention is on the 127.00 handle next.
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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