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TECHS: Price Signal Summary - Gold Is Off Recent Highs

  • The equity space remains bullish. E-mini S&P futures are consolidating, the focus though remains on 4000.00.
  • In the FX space, the USD is softer so far this week.
    • EURUSD attention is on 1.2156, 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. The pattern's key support is at 90.05, Jan 21 low - the base of the right shoulder. A break would negate the recent reversal and strengthen a USD bearish argument.
    • The USDJPY key support zone for today is between 104.51, 20-day EMA and 104.41, a trendline support drawn off the Jan 6 low.
    • EURGBP targets 0.8711, May 11, 2020 low.
  • On the commodity front, Gold has stalled at $1855.5, Wednesday's high. Key support lies at $1785.0, Feb 4 low. Oil contracts remain firm. Brent (J1) targets $62.46, Jan 24, 2020 high (cont). WTI (H1) bulls eye $59.06 next, 1.382 projection of Apr - Aug rally from the Nov 2 low.
  • In the FI space, Bunds (H1) are firmer as the corrective recovery from 175.61, Feb 8 low extends. Resistance is at 176.82, the 20-day EMA. 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. BTPs (H1) are through 153.00. This opens 153.87, 1.00 projection of the Oct - Jan rally from Jan 22 low.

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