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Price Signal Summary - S&P E-Minis Trend Needle Still Points North

MARKET INSIGHT
  • In the equity space, S&P E-Minis are consolidating, the outlook however remains bullish. Fresh highs last week reinforces the current trend direction and this signals scope for a climb towards 4204.75 next, May 31 high and the next key resistance. Initial key support is 3998.05, the 50-day EMA. EUROSTOXX 50 futures trend conditions remain bullish and last week’s high print reinforces this theme. The contract has cleared the 76.4% retracement of the Jun 6 - Jul 5 downleg, at 3722.40. This opens 3840.00, the Jun 6 high. Initial firm support to watch is 3597.20, the 50-day EMA.
  • In FX, the EURUSD short-term conditions are bullish as long as price holds above support at 1.0097, the Jul 27 low. A resumption of gains would signal scope for a continuation higher inside the bull channel drawn from the Feb 10 high - the top intersects at 1.0370. Weakness below 1.0097 would alter the picture. A bullish short-term theme in GBPUSD remains intact and last week’s pullback is considered corrective. Price has recently traded above the 50-day EMA and the next objective at 1.2332, the Jun 27 high. Potential is also seen for a climb towards 1.2406, the Jun 16 high and a key resistance. Initial support to watch lies is at 1.2004, Friday’s low. USDJPY is trading closer to its most recent highs. It is still possible that recent gains are a correction. The price levels to watch are; 136.91, the former bull channel support breached on Jul 28 and a key resistance and 130.41, last Tuesday’s low and a bear trigger.
  • On the commodity front, Gold maintains a firmer tone despite Friday’s pullback. The yellow metal has recently breached the 50-day EMA and attention is on trendline resistance at $1799.6. The trendline is drawn from the Mar 8 high. A breach of the line would represent an important technical break and highlight a stronger reversal of the 5-month downtrend. Initial firm support lies at $1754.4 the Aug 3 low. In the Oil space, WTI futures remain vulnerable following last week’s move lower. Price has breached support at $88.23, Jul 14 low and a key support. This opens$85.37, the Mar 15 low.
  • In the FI space, a short-term bull cycle in Bund futures remains intact and the recent pullback is considered corrective. Scope is seen for a climb to 159.79 next, the Apr 4 high (cont). Initial firm support is 154.88, the 20-day EMA. The trend condition in {GB} Gilts remains bullish and pullbacks are considered corrective. Two support level to watch are:
    • 116.33, 50-day EMA.
    • 116.27 Trendline support drawn from the Jun 16 low.
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  • In the equity space, S&P E-Minis are consolidating, the outlook however remains bullish. Fresh highs last week reinforces the current trend direction and this signals scope for a climb towards 4204.75 next, May 31 high and the next key resistance. Initial key support is 3998.05, the 50-day EMA. EUROSTOXX 50 futures trend conditions remain bullish and last week’s high print reinforces this theme. The contract has cleared the 76.4% retracement of the Jun 6 - Jul 5 downleg, at 3722.40. This opens 3840.00, the Jun 6 high. Initial firm support to watch is 3597.20, the 50-day EMA.
  • In FX, the EURUSD short-term conditions are bullish as long as price holds above support at 1.0097, the Jul 27 low. A resumption of gains would signal scope for a continuation higher inside the bull channel drawn from the Feb 10 high - the top intersects at 1.0370. Weakness below 1.0097 would alter the picture. A bullish short-term theme in GBPUSD remains intact and last week’s pullback is considered corrective. Price has recently traded above the 50-day EMA and the next objective at 1.2332, the Jun 27 high. Potential is also seen for a climb towards 1.2406, the Jun 16 high and a key resistance. Initial support to watch lies is at 1.2004, Friday’s low. USDJPY is trading closer to its most recent highs. It is still possible that recent gains are a correction. The price levels to watch are; 136.91, the former bull channel support breached on Jul 28 and a key resistance and 130.41, last Tuesday’s low and a bear trigger.
  • On the commodity front, Gold maintains a firmer tone despite Friday’s pullback. The yellow metal has recently breached the 50-day EMA and attention is on trendline resistance at $1799.6. The trendline is drawn from the Mar 8 high. A breach of the line would represent an important technical break and highlight a stronger reversal of the 5-month downtrend. Initial firm support lies at $1754.4 the Aug 3 low. In the Oil space, WTI futures remain vulnerable following last week’s move lower. Price has breached support at $88.23, Jul 14 low and a key support. This opens$85.37, the Mar 15 low.
  • In the FI space, a short-term bull cycle in Bund futures remains intact and the recent pullback is considered corrective. Scope is seen for a climb to 159.79 next, the Apr 4 high (cont). Initial firm support is 154.88, the 20-day EMA. The trend condition in {GB} Gilts remains bullish and pullbacks are considered corrective. Two support level to watch are:
    • 116.33, 50-day EMA.
    • 116.27 Trendline support drawn from the Jun 16 low.