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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
MARKET INSIGHT
- In the equity space, S&P E-Minis continue to consolidate. The short-term trend outlook remains bullish though. Fresh highs last week reinforced the current condition and this signals scope for a climb towards 4204.75 next, May 31 high and the next key resistance. Initial key support is 4003.69, the 50-day EMA. The short-term uptrend in EUROSTOXX 50 futures is intact. 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. The focus is on 3840.00, the Jun 6 high. Initial firm support to watch is 3603.40, the 50-day EMA.
- In FX, EURUSD short-term conditions are bullish as long as price continues to trade above support at 1.0097, the Jul 27 low. Potential is seen for an extension higher inside the bull channel drawn from the Feb 10 high - the top intersects at 1.0361 and this is a key short-term resistance. 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 at 1.2004, the Aug 5 low. USDJPY is holding on to its most recent gains. It is still possible that the latest bounce is a correction. The price levels to watch are; 137.11, the former bull channel support breached on Jul 28 plus a key resistance, and 130.41, last Tuesday’s low and a bear trigger.
- On the commodity front, Gold maintains a firmer tone and attention is the next key resistance at $1797.1. This is a trendline resistance 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 has exposed $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 likely a correction. Scope is seen for a climb to 159.79 next, the Apr 4 high (cont). Initial firm support is 155.05, the 20-day EMA. The trend condition in Gilts remains bullish and pullbacks are considered corrective. Two support level to watch are:
- 116.37, 50-day EMA.
- 116.44 Trendline support drawn from the Jun 16 low.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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