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Price Signal Summary - The 20-Day EMA Marks Key Short-Term Resistance In Gilts

OUTLOOK
  • In the FI space, Bund futures traded sharply higher on Tuesday. The contract is firmer today, a continuation higher would signal scope for a climb towards 135.85, 38.2% retracement of the Mar 20 - Apr 19 bear leg and the 136.00 handle. On the downside, key short-term support lies at the Apr 19 low of 133.10. This is the bear trigger and a break would reinstate the recent bearish theme instead.
  • Gilt futures traded higher earlier this week. Prices are recovering today, a strong resumption of gains would refocus attention on resistance at 102.09, the 20-day EMA where a break is required to highlight potential for a continuation of the bull cycle. On the downside, key support and the bear trigger has been defined at 99.73, the Apr 19 low.

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