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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 trade above the 50-day EMA and above Monday’s low 4572.75, the key short-term support. A continuation higher would reinforce the bullish significance of recent gains and would open 4808.25, Jan 4 high and the bull trigger. EUROSTOXX 50 futures are also trading above the 50-day EMA. Key short-term support is unchanged at 4216.50, Monday’s low. A stronger recovery would open 4381.5, the Jan 5 high.
- In FX, EURUSD has cleared the top of its range and resistance at 1.1383/86, the Nov 30 and Dec 31 high. The pair has also traded through resistance at 1.1432 - the top of a bear channel drawn from the Jun 1, 2021 high. This strengthens the current reversal and opens 1.1514 next, the Nov 5 low. GBPUSD remains firm and has cleared 1.3676, 76.4% of the Oct - Dec sell-off. The 200-dma at 1.3737 is being challenged, a clear break would open 1.3835, Oct 20 high. USDJPY remains in a short-term corrective cycle. The pair has branched the 20-day EMA and attention turns to support at the 50-day EMA - at 114.22 today. The moving average set-up suggests the trend remains bullish and recent weakness is considered corrective. A clear breach of the 50-day EMA is required to suggest scope for a deeper sell-off instead.
- On the commodity front, Gold traded higher again yesterday. The yellow metal has managed to remain inside its bull channel drawn from the Aug 9 low - last Friday's low of $1782.8 and the recovery from this level means the channel base provided support. The focus is on key near-term resistance at $1831.9, Jan 3 high. WTI futures remain in an uptrend and the contract traded higher yesterday. The rally has resulted in a break of the key resistance at $82.13, Oct 25 high to confirm a resumption of the broader uptrend. The focus is on $83.71, 1.618 projection of the Dec 2 - 9 - 20 price swing.
- In the FI space, the Bund futures trend direction is unchanged and remains bearish. The focus is on 169.34, Oct 29 low. Gilts remain in a downtrend too and short-term gains are considered corrective. The focus is on 122.66 next, 3.764 projection of the Dec 8 - 16 - 20 price swing.
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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