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Price Signal Summary - Risk-On Mood Pushes Equities Higher, Bonds Lower

MARKET INSIGHT
  • In the equity space, the S&P E-minis futures trend condition remains bullish and the 4800.00 has been breached. The break higher confirms a resumption of the uptrend and paves the way for a climb towards 4854.19, 0.764 projection of the Oct 1 - Nov 22 - Dec 3 price swing. EUROSTOXX 50 futures remain in an uptrend and continue to push higher. The recent break of resistance at 4270.00, the Dec 8 high strengthened bullish conditions and attention is on the key resistance at 4392.50, the Nov 18 high.
  • In FX, EURUSD remains below resistance at 1.1383/86, the Nov 30 and Dec 31 high. Price continues to trade inside the past month's range. A deeper pullback would expose support at 1.1222, Dec 15 low ahead of the bear trigger at 1.1185, Jul 1, 2020. For bulls, a clear breach of 1.13783/86 is required to suggest scope for a stronger recovery. GBPUSD remains above its 50-day EMA at 1.3427 - the recent breach of this average reinforced bullish conditions. A resumption of strength would clear the way for 1.3578, 61.8% of the Oct - Dec sell-off and 1.3607, the Nov 9 high. EURGBP weakness has opened the major support and bear trigger at 0.8282/77, the Feb’20 / Dec’19 low and key bear trigger. Note that the 0.8300 area is the base of a broad multi-year range and marks a major support. Initial resistance is at 0.8419, Monday’s high. USDJPY has cleared key resistance at 115.52, the Nov 24 high. The breach confirms a resumption of both the short and medium-term trends, paving the way for a climb towards 116.09 next, 1.764 projection of Apr 23 - Jul 2 - Aug 4 price swing.
  • On the commodity front, yesterday's high in Gold of $1831.9 (resistance) plus 1779.8, the channel base drawn from the Aug 9 low (support), mark the key short-term directional triggers. For now, the trend remains up. WTI futures remain in an uptrend. Recent weakness is considered corrective and yesterday’s low of $74.27 represents a key short-term support. Attention is on resistance at $77.44, the Dec 29 high and the bull trigger.
  • In the FI space, Bund futures have started the year on a soft note. Last week’s breach of support at 171.77, Nov 24 low strengthened the bearish case, paving the way for a move towards 170.19, Nov 2 low ahead of the major support at 169.34, the Oct 29 low. Gilts remain in a downtrend. The contract has cleared support at 124.35, Dec 29 low and 124.17, Nov 24 low. The break of this latter support strengthens bearish conditions and opens 123.48, the 3.00 projection of the Dec 8 - 16 - 20 price swing.
Fixed Income Technical AnalysisForeign Exchange Technical AnalysisHomepagemarkets-real-timeBulletMarketsFixed Income BulletsForeign Exchange Bullets
Fixed Income Technical AnalysisForeign Exchange Technical AnalysisHomepagemarkets-real-timeBulletMarketsFixed Income BulletsForeign Exchange Bullets

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