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China Faces Structural Inflation Risk: CBN


(M1) Attention is On The 50-DMA


(M1) Outlook Remains Bearish

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  • In the equity space:
    • S&P E-minis are consolidating and bullish trend conditions remain intact. The focus is on 4080.99, 1.236 projection of the Feb 1 - Feb 16 - Mar 4 price swing.
    • EUROSTOXX 50 bullish activity extends with the index approaching 4000.00. A break would open 4047.72, 2.236 projection of the Dec 21 - Jan 8 - Jan 28 price swing
  • In the FX world, EURUSD continues to climb as the correction extends. The focus is on 1.1900 and 1.1944, the 50-day EMA. The moving average highlights a key resistance. The GBPUSD outlook remains bearish. Recent gains have stalled at the former bull channel base drawn off the Nov 2 low. Resistance has been defined at 1.3919, yesterday's intraday high. EURGBP rallied yesterday. The price pattern is a bullish engulfing candle. This exposes the next key resistance zone at 0.8646, Mar 24 high and S/T reversal trigger and 0.8654, 50-day EMA. USDJPY remains bullish but has entered a corrective phase. The next support is at 109.31, 20-day EMA.
  • On the commodity front:
    • Gold is holding onto recent gains. Key resistance is at $1755.5, Mar 18 high, where a break is required to suggest scope for a stronger bounce.
    • Brent (M1) key directional triggers are:
      • Resistance at $65.39, Mar 29 high and key support at $60.33, Mar 23 low and the bear trigger
    • WTI (K1) directional triggers are:
      • Resistance at $62.27, Mar 30 high and support at $57.25, Mar 23 low and the bear trigger
  • In the FI space, Bunds (M1) remain vulnerable despite recent gains. Key support to watch is at 170.52, Mar 18 low. The key support and bear trigger in Gilts (M1) is at 126.79, Mar 18 low.