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Price Signal Summary - Trend Direction In Bunds Remains Down

  • In the FI space, Bund futures are consolidating and maintain a softer tone following last week’s extension lower. Price has cleared key support and the bear trigger at 132.12, the May 26 low. The break strengthens bearish conditions and confirms a resumption of the downtrend. This opens 130.46,the 1.236 projection of the Jun 1 - 16 - 27 price swing. Moving average studies are in bear-mode position, reinforcing a bearish theme. Initial firm resistance is at 132.18, the Jun 16 low.
  • The trend needle in Gilt futures continues to point south. Last week’s break lower reinforces bearish conditions and the contract has cleared key support at 93.88, the Jun 20 low, confirming a resumption of the downtrend and maintaining the bearish price sequence of lower lows and lower highs. This signals scope for a move to 91.80 next,1.382 projection of the Jun 1 - 20 - 23 price swing (cont). Initial firm resistance is 93.88. A break of this level is required to ease bearish pressure.

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