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(M1) Directional Triggers Intact


(M1) Bullish Focus


(M1) New Multi-Month Highs


Clearing Major Support


Sizeable Resistance Building

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  • No change on the equity front with bullish conditions still dominating. E-mini S&P futures targets the psychological 4000.00 handle. The EUROSTOXX50 index is firmer too and has breached 3657.83, Jan 8 high to resume the underlying uptrend. Attention is on 3700.00 and 3798.19. The latter is the 0.764 projection of the Mar - Jul - Oct 2020 price swing
  • In the FX space, the USD is facing selling pressure.
    • EURUSD is extending the recovery off the Friday low of 1.1952. Yesterday we highlighted the possibility that Friday's activity in pattern terms, is a bullish engulfing candle. Today has seen the pair trade through the 20-and 50-day EMAs opening 1.2156 next, Jan 29 high.
    • Last week we highlighted an inverted head and shoulders in the USD Index. Note this pattern's key support lies at 90.048, Jan 21 low and the right shoulder of the pattern. A break would negate the pattern and reinforce a USD bearish risk theme.
    • USDJPY is off recent highs too. The next support lies at 104.47, the 20-day EMA.
    • EURGBP remains bearish and targets 0.8711, May 11, 2020 low.
  • On the commodity front, Gold is firmer too and has breached its 20-day EMA. This opens the 50-day EMA at $1857.5 next. Oil contracts remain firm. Brent (J1) targets $61.61 next - 1.500 projection of the Apr - Aug - Nov 2020 price swing. 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) have found support at 175.61, 1.236 projection of Jan the 4 - 12 sell-off from the Jan 27 high. This is the bear trigger. 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) continue to push higher with sights set on the 153.00 a round number.