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Price Signal Summary - Path Of Least Resistance In The FI Space, Remains Down

MARKET INSIGHT
  • In the equity space, S&P E-Minis continues to trade sideways and inside its recent range. The current consolidation still appears to be a bull flag formation - a bullish continuation pattern that reinforces current trend conditions. Attention remains on the 50-day EMA that intersects at 4178.11 today. A clear break of this average would strengthen a bullish outlook, confirm the bull flag pattern, and open 4303.50, the Apr 26/28 high. First key support to watch is 3960.50, May 26 low. EUROSTOXX 50 futures continue to consolidate too, closer to recent highs. The short-term outlook is bullish. A positive theme follows the recent break of the 50-day EMA and scope is seen for a climb towards 3883.00, Apr 21 high and the key resistance at 3944.00, Mar 29 high. Short-term support is at 3576.00, May 19 low. Initial support is at 3745.40, the 20-day EMA.
  • In FX, EURUSD is unchanged and still trades just ahead of resistance marked by the bear channel top that is drawn from the Feb 10 high. The resistance intersects at 1.0742 today and remains a key short-term hurdle for bulls. A clear break would highlight a stronger bullish outlook. A reversal lower would instead open support at 1.0533 initially, the May 20 low. Initial support to watch lies at 1.0627, Jun 1 low. GBPUSD remains above Tuesday’s low of 1.2431 and this level represents a key short-term support. Attention is still on the 50-day EMA, at 1.2680 today. A break is required to strengthen bullish conditions. A reversal lower and breach of 1.2431 would expose 1.2317, the May 17 low. USDJPY remains in a clear uptrend and this week’s gains have confirmed a resumption of the primary uptrend. Sights are set on 135.00 and 135.15, the Jan 31 2002 high and a key congestion area.
  • On the commodity front, Gold is unchanged and remains in consolidation mode. Firm resistance is still seen at the 50-day EMA, which intersects at $1872.7 today. A break of this average is required to suggest scope for stronger gains. For bears, a reversal lower would refocus attention on the key support and bear trigger at $1787.0, May 16 low. Initial support to watch is $1828.6, Jun 1 low. In the Oil space, WTI futures remain bullish and the contract traded higher again on Wednesday, as it extends gains above the $120.00 handle. The focus is on $123.35, 1.236 projection of the May 11 - 17 -19 price swing.
  • In the FI space, Bund futures remain in a clear downtrend and indications are that futures are likely to continue moving lower. The focus is on 148.23, the Jun 10, 2015 low (cont). The path of least resistance in Gilts, remains down and attention is on weakness towards 114.08 next, 2.236 projection of the May 19 - 24 - 26 price swing.
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  • In the equity space, S&P E-Minis continues to trade sideways and inside its recent range. The current consolidation still appears to be a bull flag formation - a bullish continuation pattern that reinforces current trend conditions. Attention remains on the 50-day EMA that intersects at 4178.11 today. A clear break of this average would strengthen a bullish outlook, confirm the bull flag pattern, and open 4303.50, the Apr 26/28 high. First key support to watch is 3960.50, May 26 low. EUROSTOXX 50 futures continue to consolidate too, closer to recent highs. The short-term outlook is bullish. A positive theme follows the recent break of the 50-day EMA and scope is seen for a climb towards 3883.00, Apr 21 high and the key resistance at 3944.00, Mar 29 high. Short-term support is at 3576.00, May 19 low. Initial support is at 3745.40, the 20-day EMA.
  • In FX, EURUSD is unchanged and still trades just ahead of resistance marked by the bear channel top that is drawn from the Feb 10 high. The resistance intersects at 1.0742 today and remains a key short-term hurdle for bulls. A clear break would highlight a stronger bullish outlook. A reversal lower would instead open support at 1.0533 initially, the May 20 low. Initial support to watch lies at 1.0627, Jun 1 low. GBPUSD remains above Tuesday’s low of 1.2431 and this level represents a key short-term support. Attention is still on the 50-day EMA, at 1.2680 today. A break is required to strengthen bullish conditions. A reversal lower and breach of 1.2431 would expose 1.2317, the May 17 low. USDJPY remains in a clear uptrend and this week’s gains have confirmed a resumption of the primary uptrend. Sights are set on 135.00 and 135.15, the Jan 31 2002 high and a key congestion area.
  • On the commodity front, Gold is unchanged and remains in consolidation mode. Firm resistance is still seen at the 50-day EMA, which intersects at $1872.7 today. A break of this average is required to suggest scope for stronger gains. For bears, a reversal lower would refocus attention on the key support and bear trigger at $1787.0, May 16 low. Initial support to watch is $1828.6, Jun 1 low. In the Oil space, WTI futures remain bullish and the contract traded higher again on Wednesday, as it extends gains above the $120.00 handle. The focus is on $123.35, 1.236 projection of the May 11 - 17 -19 price swing.
  • In the FI space, Bund futures remain in a clear downtrend and indications are that futures are likely to continue moving lower. The focus is on 148.23, the Jun 10, 2015 low (cont). The path of least resistance in Gilts, remains down and attention is on weakness towards 114.08 next, 2.236 projection of the May 19 - 24 - 26 price swing.