GOLD TECHS: Corrective Cycle Remains In Play
- RES 4: $2500.0 - Round number resistance
- RES 3: $2481.5 - 1.764 proj of the Oct 6 - 27 - Nov 13 price swing
- RES 2: $2452.5 - 2.618 proj of the Oct 6 - 27 - Nov 13 price swing
- RES 1: $2352.6/2431.5 - High Apr 16 / 12 and the bull trigger
- PRICE: $2315.5 @ 07:10 BST May 2
- SUP 1: $2281.7 - Low May 1
- SUP 2: $2242.7 - 50-day EMA
- SUP 3: $2146.2 - Low Mar 18 and key short-term support
- SUP 4: $2088.5 - High Dec 28
Gold traded lower Tuesday and breached initial support at $2291.6, the Apr 23 low. The precious metal has also traded through the 20-day EMA and this highlights a corrective cycle. A continuation lower would signal scope for an extension towards $2242.7, the 50-day EMA. Note that a short-term bear cycle is allowing significant overbought condition to unwind. Key resistance and the bull trigger is at $2431.5, the recent Apr 12 high.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
EURJPY TECHS: Approaching Trendline Support
- RES 4: 167.17 2.0% 10-dma envelope
- RES 3: 166.00 Round number resistance
- RES 2: 165.35 High Mar 20 and the bull trigger
- RES 1: 163.43/164.42 High Apr 1 / High Mar 27
- PRICE: 162.78 @ 07:08 GMT Apr 2
- SUP 1: 162.15 Trendline drawn from Dec 7 low
- SUP 2: 162.04 50-day EMA
- SUP 3: 161.07 Low Mar 15
- SUP 4: 160.22 Low Mar 11
EURJPY remains in a short-term bear cycle and the cross is approaching a key short-term support at 162.15, a trendline drawn from the Dec 7 ‘23 low. For now, the move lower appears to be a correction, however, a clear break of the trendline would highlight a stronger short-term reversal. A clear breach of the trendline would also highlight a break of the 50-day EMA - at 162.04. Initial firm resistance is at 164.42, the Mar 27 high.
EUROZONE ISSUANCE: EGB Supply: W/C 1 April 2024 (2/2)
- Also on Thursday, France will look to hold a LT OATs auction. The auction size has been set at E11.0-12.5bln, down slightly from the February and March target ranges of E11.5-13.0bln. On offer will be E11.0-12.5bln of the 10-year on-the-run 3.50% Nov-33 OAT (ISIN: FR001400L834), the first reopening of the 30-year on-the-run 3.25% May-55 OAT (ISIN: FR001400OHF4) and the 4.00% Apr-60 OAT (ISIN: FR0010870956) alongside the 1.75% Jun-39 Green OAT (ISIN: FR0013234333).
- Finland will conclude issuance for the week on Thursday with up to E0.4bln available through the ORI Facility.
GILT TECHS: (M4) Key Resistance Remains Exposed
- RES 4: 101.00 Round number support
- RES 3: 100.73 1.764 projection of the Feb 29 - Mar 1 - 4 price swing
- RES 2: 100.50 1.618 projection of the Feb 29 - Mar 1 - 4 price swing
- RES 1: 100.05/100.37 High Mar 22 / 12 and a key S/T resistance
- PRICE: 99.74 @ Close Mar 28
- SUP 1: 99.04/98.05 20-day EMA / Low Mar 15 and a key support
- SUP 2: 97.67 76.4% retracement of the Feb 29 - Mar 12 rally
- SUP 3: 97.42 Low Mar 1
- SUP 4: 96.83 Low Feb 29 and the bear trigger
Gilt futures continue to trade closer to their recent highs and a bull cycle remains in play. A continuation higher would expose key short-term resistance at 100.37, the Mar 13 low, where a break would strengthen any developing bullish theme. Key short-term support has been defined at 98.05, the Mar 15 low. A break would be bearish. For now, 98.05 and 100.37 remain the key short-term directional triggers.
