GILTS: Bears Remain In Technical Control, 2s10s Continues To Steepen

The June contract was already front Month for the US, expect it to be for Europe into end of day/Tomorrow.

Around 88% of the front Volume in Estoxx (VGH6) is spread related:

• ESA: 73%.
• NQA: 71%.
• DOW: 70%.

As of Yesterday:

• VGA: 59%.
• EU Banks: 59%.
• Stoxx600: 76%.
• GXA: 53%.
• FTSE: 64%.

• RES 4: 0.7284 High Jun’22
• RES 3: 0.7256 2.500 proj of the Nov 21 - Dec 10 - 18 price swing   
• RES 2: 0.7208 61.8% of the Feb 25 ‘21 - Apr 9 ‘25 bear leg
• RES 1: 0.7187 High Mar 11 and the bull trigger
• PRICE: 0.7114 @ 07:31 GMT Mar 18
• SUP 1: 0.6973 50-day EMA and key support
• SUP 2: 0.6944 Low Mar 3  
• SUP 3: 0.6897 Low Feb 6
• SUP 4: 0.6834 Low Jan 23

A bull trend in AUDUSD remains intact and price is trading above key support. The support level to monitor is 0.6973, the 50-day EMA. A clear break of this average would undermine the current bullish theme. The moving average set-up is in a bull mode position and this continues to highlight a dominant uptrend. A resumption of the trend would open 0.7208 next, a Fibonacci retracement point.

• RES 4: $123.68 - High Jun 14 ‘22 (cont) and a key resistance
• RES 3: $120.00 - Psychological round number 
• RES 2: $109.39 - 76.4% retracement of the Mar 9 - 10 sell-off
• RES 1: $103.15 - 61.8% retracement of the Mar 9 - 10 sell-off      
• PRICE: $93.09 @ 07:17 GMT Mar 18
• SUP 1: $92.04 - Low Mar 13
• SUP 2: $81.88 - 20-day EMA 
• SUP 3: $72.02 - 50-day  EMA
• SUP 4: $63.60 - Low Feb 26   

A bull wave in WTI futures remains intact. The recent sharp pullback from the Mar 9 high, has allowed an extreme overbought trend condition to unwind. The key support zone to monitor is $81.88 - $72.02, the area between the 20- and 50-day EMAs. A clear break through this zone would signal a possible trend reversal. On the upside, a continuation higher near-term would open $103.15 next, a Fibonacci retracement.