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Price Signal Summary - Recovery In Bunds Extends

OUTLOOK
  • In the FI space, Bund futures traded higher Wednesday and the contract is firmer today, as the recovery from 134.70 extends, the Mar 31 low. 137.85, Mar 27 high, has been tested. A break of this level would open 139.54, Mar 24 high. Key resistance is still far off at 140.30, Mar 20 high. Initial support to watch is 135.87, the 20-day EMA.
  • Gilt futures have recovered from recent lows and the contract has traded higher again today. For now, gains are considered corrective, however, a continuation higher would open 105.04, 50.0% of the Mar 20 - 31 downleg and 105.62, the Mar 27 high. Initial support to watch is 103.86, the 20-day EMA where a break would signal a potential bearish reversal.

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