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Price Signal Summary - Equity Space Still Bullish

MARKET INSIGHT
  • In the equity space, S&P E-minis are holding onto this week's gains. Attention is on 4717.00 next, 1.50 projection of the Jul 19 - Aug 16 - Aug 19 price swing. Initial support to watch is 4622.04, the 20-day EMA. EUROSTOXX 50 futures uptrend remains intact and the contract continues to register a fresh trend high. The focus is on 4420.80, 1.382 projection of the Jul 19 - Sep 6 - Oct 6 price swing.
  • In FX, EURUSD traded lower yesterday and breached key support at 1.1300, the base of a bear channel drawn from the Jun 1 high. A clear break and continued bearish follow through would open 1.1222, 1.618 projection of the Jan 6 - Mar 31 - May 25 price swing. The recent break in GBPUSD of 1.3412, Sep 29 low, opens 1.3334 next, 1.00 projection of the Sep 14 - 29 - Oct 20 price swing. For now though, the pair continues to correct higher. Watch resistance at 1.3547, the 20-day EMA. EURGBP remains heavy following this week's sharp sell-off and breach of 0.8403, Oct 26 low. This has opened 0.8356, Feb 26 low. USDJPY has breached resistance at 114.70, the Oct 20 high. The break higher confirms a resumption of the underlying uptrend and opens 115.51 next, the Mar 10, 2017 high. A concern for bulls is yesterday's bearish engulfing candle. A deeper pullback would expose key support at 112.73, Sep 9 low. EURCHF is challenging1.0505, the May 14, 2020 low. A break would (potentially) expose the cross to a deeper sell-off below 1.0500.
  • On the commodity front, Gold is consolidating but remains bullish. Attention is on $1877.7, Jun 14 high and $1903.8, Jun 8 high. WTI has traded through key short-term support at $78.25, Nov 4 low. The break suggests scope for a deeper corrective pullback towards $76.13, 38.2% retracement of the Aug 23 - Oct 25 rally .
  • In the FI space, Bund futures maintain a bullish short-term tone and the contract remains above support at 170.06, Nov 5 low. The focus is on 171.95, 61.8% of the Aug - Nov sell-off. Gilts also maintain a firmer tone and the recent pullback is considered corrective. A resumption of strength would suggest potential for a climb towards 127.69 next, Sep 21 high. Initial support has been defined at 125.40, Nov 17 low.
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Fixed Income Technical AnalysisForeign Exchange Technical AnalysisHomepagemarkets-real-timeBulletMarketsFixed Income BulletsForeign Exchange Bullets

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