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TECHS: Price Signal Summary - E-Minis Grind Higher

  • The equity space remains bullish. {US} E-mini S&P futures have cleared 3900.00 exposing the 4000.00 handle.
  • In the FX space, the USD is softer so far this week.
    • EURUSD continues to extend the recovery from the Feb 5 low of 1.1952. The pair has cleared the 20-and 50-day EMAs opening 1.2156 next, Jan 29 high.
      • The bullish engulfing candle from Feb 5 is still in play.

    • Last week we highlighted an inverted head and shoulders in the USD Index. Note this pattern's key support lies at 90.05, Jan 21 low and the pattern's right shoulder. A break would negate the reversal and strengthen a USD bearish risk theme.
    • USDJPY is off recent highs. The key support zone for today is between 104.48, 20-day EMA and 104.27, a trendline support drawn off the Jan 6 low. The low for today so far is 104.41.
    • EURGBP remains bearish and targets 0.8711, May 11, 2020 low.
  • On the commodity front, Gold maintains a firmer tone and is pressuring the 20-day EMA. This opens the 50-day EMA at $1856.7 next. Oil contracts remain firm. Brent (J1) targets $61.61 - 1.500 projection of the Apr - Aug - Nov 2020 price swing. WTI (H1) bulls eye $59.06 next, 1.382 proj of Apr - Aug rally from the Nov 2 low.
  • In the FI space, Bunds (H1) have found support this week at 175.61, 1.236 projection of Jan the 4 - 12 sell-off from the Jan 27 high. This is the bear trigger - the trend remains down. Gilts (H1) outlook remains bearish with attention on 131.53, 2.236 projection of the Dec 11 - 24 sell-off from the Jan 4 high.

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