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Price Signal Summary - Primary Trend Direction In Gilts Remains Down

OUTLOOK
  • In the FI space, Bund futures faced resistance Thursday and the contract remains below this week’s high of 135.00 (Jun 27). Price has this week breached resistance at 134.77, the Jun 12 high. A stronger recovery would open 135.85, the Jun 1 high. 135.00 is the first key resistance. For bears, the latest pullback highlights potential for a move lower towards key support and the bear trigger at 132.12, the May 26 low.
  • Recent gains in Gilt futures resulted in a break of resistance at the 20-day EMA. However, the contract has pulled back and continues to trade below 97.00, the Jun 23 high. The medium-term trend condition is bearish - a stronger reversal lower and a break of 93.88, the Jun 20 low, would confirm a resumption of the trend. On the upside, a resumption of gains would expose key resistance at 97.64, the Jun 1 high.

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