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TECHS: Price Signal Summary - EURUSD Bears Eye Key Support

  • Equity indices outlook is unchanged and the broader trend is up with recent weakness considered a correction. E-mini S&P futures have managed so far to find support at the 50-day EMA. Yesterday's gains are encouraging for bulls. Levels to watch today are:
    • Support at 3785.00, Friday's low. A break would trigger a deeper sell-off.
    • Initial resistance at 3934.50, Feb 25 high
  • In the FX space, EURUSD is softer following a reversal from last week's 1.2243 high on Feb 25. A shooting star candle Thursday followed by a bearish engulfing candle Friday highlights the current bearish sentiment. Furthermore, support at 1.2023, Feb 17 low has been cleared. The focus shifts to key support at 1.1952, Feb 5 low. USDJPY uptrend remains intact with the focus on 106.95 / 107.05, the Aug 28/13 2020 highs. On the USD Index (DXY), key resistance is at 91.60, Feb 5 high.
  • On the commodity front, Gold remains in a clear downtrend. Resistance is at $1775.9, Feb 26 high. The focus is on $1700.0. Oil contracts remain firm although it appears that a corrective cycle has started. Brent (K1) targets the $70.00 psychological handle but watch support at $61.39 Feb 19 low. WTI (J1) targets the round number resistance at $65.00. However keep an eye on support at $58.60, Feb 19 low.
  • In the FI space, gains in Bunds are still considered corrective. Firm resistance is seen at 175.07, the 20-day EMA. Gilts (M1) remains bearish. Scope is for a move towards the 127.00 handle. Resistance seen at 129.00, Feb 24 high and a key near-term resistance.

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