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(U3) Bearish Outlook

BUND TECHS
  • RES 4: 135.00 High Jun 27 and key resistance
  • RES 3: 134.88 High Jul 19
  • RES 2: 133.11/134.01 50-day EMA / High Jul 24
  • RES 1: 132.67 20-day EMA
  • PRICE: 132.07 @ 05:09 BST Aug 8
  • SUP 1: 131.12 Low Aug 4
  • SUP 2: 130.99 Low Jul 12
  • SUP 3: 130.60 Low Jul 10 and a key support
  • SUP 4: 130.00 Psychological round number

Bund futures are largely unchanged and the short-term outlook remains bearish. Price has recently breached 132.23, 61.8% of the Jul 10 - 19 rally. This undermined the recent bullish theme and signalled scope for an extension lower. Last Friday’s sell-off resulted in a break of 131.61, the 76.4% retracement. This opens key support at 130.60, the Jul 10 low. First resistance is at 132.67, the 20-day EMA.

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