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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 found resistance Wednesday at 4095.00. This leaves initial key resistance - 4099.00, the May 9 high - intact. The reversal lower Wednesday signals a resumption of the primary downtrend and attention is on support and bear trigger at 3855.00, May 12 low. A break would resume the downtrend and open 3843.25, the Mar 25 2021 low (cont). Gains are considered corrective and a break of 4099.00 is required to alter the short-term picture. The primary trend direction in EUROSTOXX 50 futures is down. However, the contract remains in a corrective cycle following the recovery from 3466.00, May 10 low. Price has probed resistance at 3732.00, the 50-day EMA. A clear break of this average would improve a short-term bullish theme. On the downside, key support and the bear trigger is unchanged at 3466.00.
- In FX, EURUSD traded higher Thursday and breached resistance at the 20-day EMA. The average intersected at 1.0569 and the move above this level suggests scope for a stronger short-term recovery. This has opened the next key resistance at 1.0642, the May 5 high. Note that the recent bounce from 1.0350, May 13 low, also marks a recovery from the base of a bear channel, drawn from the Feb 10 high. The channel top is at 1.0866. Initial support is at 1.0461, May 18/19 low. Yesterday, GBPUSD reversed Wednesday’s bear leg. The pair has probed resistance at the 20-day EMA, at 1.2492. A clear break of this average would signal scope for a stronger short-term recovery and open 1.2638, the May 4 high and a key resistance. Initial support lies at 1.2317, the May 17 low. USDJPY traded lower Thursday. 127.52, the May 12 low has been breached and this exposes the next key support at 126.95, Apr 27 low. The current pullback is likely a correction, and this is allowing a recent overbought trend reading to unwind. A break of 126.95 would signal scope for an extension towards the 50-day EMA, at 125.69. A reversal higher and a move above 130.05, May 9 high would be bullish.
- On the commodity front, Gold remains vulnerable and short-term gains are considered corrective. The yellow metal traded through $1800.0 on Monday. The focus is on $1780.4, the Jan 28 low. In the Oil space, WTI futures maintain a firm note, following recent gains, and despite the latest pullback. The contract has this week breached resistance at $110.07, Mar 24 high. A resumption of gains would open $116.43, the Mar 7 trend high. Initial support is at $103.24, the May 19 low.
- In the FI, Bund futures resistance has been defined at $155.33 May 12 high. The trend direction remains down and an extension lower would open 150.49, the May 9 and the bear trigger. The broader trend condition in Gilts remains down. The contract has found resistance at 121.07, May 12 high. The bear trigger is at 116.87, May 9 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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