Free Trial
US STOCKS

Late Equity Roundup: Mildly Lower on Week

USDCAD TECHS

Remains Above The 50-Day EMA

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access
MARKET INSIGHT
  • In the equity space, S&P E-minis traded lower again yesterday. The move this week has resulted in a break of key support at 4485.75, Dec 3 low. This significantly strengthens the current bearish case and signals potential for an extension lower towards 4383.85, 76.4% retracement of the Oct 2021 - Jan rally. EUROSTOXX 50 futures have probed support at 4216.50, the Jan 10 low. This level has held for now and support has again surfaced below the 50-day EMA. A clear break of 4216.50 would trigger a resumption of bearish pressure and open 4161.80, 61.8% retracement of the Dec 20 - Jan 5 rally.
  • In FX, EURUSD remains vulnerable. The move lower this week, threatens the recent bullish theme and suggests that the recent range and bear channel breakout appears to have been a false one. Further weakness would expose 1.1272, the Jan 4 low. GBPUSD trend conditions are bullish however the pair remains in a bearish corrective cycle. The support to watch is at 1.3558, the 20-day EMA where a clear break would signal potential for a deeper sell-off. The 200-dma, at 1.3734 marks an important resistance. A clear break of it would open 1.3835, Oct 20 high. USDJPY remains above the Jan 14 low 113.49. The bullish doji candle pattern on Jan 14 continues to highlight a reversal and signals the end of the recent corrective pullback. A resumption of gains would open 115.68, Jan 11 high. Sub 113.49 levels would be bearish.
  • On the commodity front, Gold traded sharply higher Wednesday. This resulted in a break of resistance at $1831.9, Jan 3 high and a bull trigger. The outlook is bullish and attention is on $1848.0 next, 76.4% retracement of the Nov 16 - Dec 15 downleg. WTI futures remain in an uptrend and the most recent pullback is likely a correction. Key support to watch is at $83.52, the Jan 12 low. A resumption of gains would refocus attention on $87.47, 2.00 projection of the Dec 2 - 9 - 20 price swing.
  • In the FI space, Bund futures remain in a downtrend and short-term gains are considered corrective. Key short-term resistance is seen at 171.00, Jan 13 high. The bear trigger is 168.95, Jan 19 low. Gilts remain in a downtrend too. Key short-term resistance has been defined at 123.79, Jan 13 high. A break is required to signal a base. The bear trigger is 121.93, Jan 19 low.
MNI London Bureau | +44 203-586-3805 | taso.anastasiou.ext@marketnews.com

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.