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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, the trend needle continues to point south however for now, futures are trading above the Jan 24 low of 4094.25 and the key support. A break of this level would confirm a resumption of the downtrend. The 20-day EMA, at 4326.89, represents an important near-term resistance. A break of this EMA is required to suggest scope for a stronger short-term recovery towards the 50-day EMA at 4424.61. EUROSTOXX 50 futures remain vulnerable however a bullish corrective cycle is still in play following this week’s gains. The move higher is allowing an oversold condition to unwind. Resistance to watch is at 3830.60, the 20-day EMA. Clearance of this average would open the 50-day EMA at 3997.70.
- In FX, yesterday’s gains in EURUSD were considered corrective and the pair stalled at the 1.1121 resistance, the Jan 28 low and a recent breakout level. The downtrend remains intact - a resumption of weakness would open 1.0767 next, the May 7 2020 low. GBPUSD has traded lower today registering a fresh cycle low print of 1.3051. This opens 1.2933 next, the Nov 5 2020 low. Today’s key technical development in USDJPY is the break of resistance at 116.34/35, the Feb 10 / Jan 4 highs and a bull trigger. The break higher confirms a resumption of the broader uptrend that started early Jan 2021. Attention turns to highs dating back to Jan 2017 - 117.53, the next objective, is the Jan 9 2017 high.
- On the commodity front, the all-time high print in Gold of $2075.5 on Aug 7 2020 remains intact following Wednesday’s strong sell-off. The broader trend condition is bullish and the pullback is allowing an overbought condition to unwind. The next support is seen at $1961.2, Mar 7 low, while a firmer area of support lies at $1932.9, the 20-day EMA. Oil markets have been volatile this week but remain in an uptrend. The move lower in WTI is allowing the recent overbought trend condition to unwind. The next firm area of support is seen at the 20-day EMA, at $102.20.
- In the FI space, Bund futures maintain this week’s bearish theme. Recent weakness signals potential for a move towards key support at 161.50, the Feb 10 low and a medium-term bear trigger. Gilts have breached a number of important short-term supports this week. This has exposed the key support at 121.10, Feb 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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