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Price Signal Summary - Trend Direction In FI Remains Down, Gains Are Considered Corrective

OUTLOOK
  • In the FI space, the broader bearish theme in Bund futures remains intact. The focus is on 135.52, the Sep 28 low and key support. This level was probed Wednesday, a clear break would confirm a resumption of the downtrend and open the 135.00 handle. Resistance is at 139.21, the 20-day EMA.
  • Gilt futures remain bearish following the reversal from last week’s high. The focus is on 90.99, Sep 28 low and bear trigger. This level has been pierced, a clear break would open the psychological 90.00 handle. Short-term gains are considered corrective. Resistance is at 97.65, the 20-day EMA. This EMA has been pierced - a clear break is required to expose 100.92, the Oct 4 high and a key resistance.

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