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OUTLOOK: Price Signal Summary - Resistance In Bunds Remains Intact For Now

OUTLOOK
  • In the FI space, recent gains in Bund futures still appear corrective - for now. The contract has traded through the 20-day EMA and attention is on key short-term resistance at 132.97, the Feb 13 high. Clearance of this level would signal a reversal. On the downside, the short-term bear trigger has been defined at 131.26, the Feb 19 low. A break of this support would resume the bear cycle that started Feb 5.
  • A bull cycle in Gilt futures remains intact and the latest pullback appears corrective - for now. The contract traded higher Tuesday and attention is on resistance at 93.39, the Feb 13 high. It has been pierced, a clear break would open 93.83, the high on Feb 6 and a bull trigger. On the downside, key short-term support has been defined at 91.79, the Feb 20 low. Clearance of this level would strengthen a bear threat.
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  • In the FI space, recent gains in Bund futures still appear corrective - for now. The contract has traded through the 20-day EMA and attention is on key short-term resistance at 132.97, the Feb 13 high. Clearance of this level would signal a reversal. On the downside, the short-term bear trigger has been defined at 131.26, the Feb 19 low. A break of this support would resume the bear cycle that started Feb 5.
  • A bull cycle in Gilt futures remains intact and the latest pullback appears corrective - for now. The contract traded higher Tuesday and attention is on resistance at 93.39, the Feb 13 high. It has been pierced, a clear break would open 93.83, the high on Feb 6 and a bull trigger. On the downside, key short-term support has been defined at 91.79, the Feb 20 low. Clearance of this level would strengthen a bear threat.