MNI DAILY TECHNICAL ANALYSIS - New Highs for Equities

Price Signal Summary – New Highs for Equities, Gold Follows

• A bull cycle in S&P E-Minis remains intact and Thursday’s gains reinforce current conditions. The contract has once again traded to a fresh cycle high. A corrective bear cycle in Eurostoxx 50 futures remains in play. Recent weakness resulted in a breach of 5369.48, the 50-day EMA. A clear break of this average strengthens a short-term bearish threat and signals scope for a deeper retracement.
• A bullish theme in GBPUSD remains intact. The rally that started Sep 3 has retraced the steep Sep 2 sell-off and highlights a stronger bullish development. USDJPY is unchanged and remains inside its range. Key short-term support is at 146.21, the Aug 14 low and a bear trigger. A break of this level would highlight a stronger bearish threat and highlight a range breakout. AUDUSD bulls remain in the driver’s seat. This week’s gains plus the breach of 0.6625, the Jul 24 high and bull trigger, confirm a resumption of the uptrend. The climb opens 0.6677, a Fibonacci projection.
• Gold remains in a clear bull cycle and continues to trade at its recent highs. The yellow metal has traded to a fresh all-time high again this week. The break higher confirms a resumption of the primary uptrend. The trend condition in WTI futures is unchanged - a bear cycle remains intact and recent short-term gains are considered corrective. The pullback from the Sep 2 high highlights a possible reversal and the end of the corrective phase.
• Recent gains in Bund futures resulted in a break of resistance at 128.87, the Aug 28 high and short-term bull trigger. The climb undermines a recent bearish theme and highlights a stronger reversal. A recent rally in Gilt futures highlights a stronger corrective cycle and the contract is holding on to its gains. The bull cycle is allowing an oversold trend condition to unwind.

[GLOBAL] MNI Tech Trend Monitor - Highlighting Key Longer-Term Trends:
MNI Tech Trend Monitor: https://emedia.marketnews.com/marketnewsintl/MNITechTrendMonitor.pdf

We introduce the MNI Tech Trend Monitor - This document highlights a selection of key longer-term trends that we have identified in markets that could be reaching inflection points, trend reversals/extensions or technically significant levels.

Covering:

• UK Gilt 10y Yield
• UK Gilt 30y Yield
• ICE USD Index
• Europe Banking Stock Index (SX7E)

FOREIGN EXCHANGE    

EURUSD TECHS: Trading Closer To Its Recent Highs

• RES 4: 1.1923 2.00 proj of the Feb 28 - Mar 18 - 247 price swing
• RES 3: 1.1851 High Sep 10 2021
• RES 2: 1.1829 High Jul 01 and the bull trigger
• RES 1: 1.1789 High Jul 24
• PRICE: 1.1725 @ 06:11 BST Sep 12
• SUP 1: 1.1635 50-day EMA
• SUP 2: 1.1574 Low Aug 27
• SUP 3: 1.1528 Low Aug 5
• SUP 4: 1.1392 Low Aug 1 and bear trigger.

The trend theme in EURUSD remains bullish and the pair is trading closer to its recent highs. Resistance at 1.1743, the Aug 22 high, has recently been cleared reinforcing a bull cycle. This signals scope for 1.1829, the Jul 01 high and bull trigger. Clearance of this hurdle would confirm a resumption of the primary uptrend. Support to watch is the 50-day EMA, at 1.1635. A clear breach of this average is needed to signal scope for a deeper retracement.    

GBPUSD TECHS: Trading Just Ahead Of The Bull Trigger

• RES 4: 1.3681 High Jul 4  
• RES 3: 1.3636 76.4% retracement of the Jul 1 - Aug 1 downleg
• RES 2: 1.3595 High Aug 14 and a bull trigger 
• RES 1: 1.3590 High Sep 9
• PRICE: 1.3556 @ 06:25 BST Sep 12
• SUP 1: 1.3472/3333 50-day EMA / Low Sep 3
• SUP 2: 1.3315 61.8% retracement of the Aug 1 - 14 bull leg
• SUP 3: 1.3249 76.4% retracement of the Aug 1 - 14 bull leg 
• SUP 4: 1.3142 Low Aug 1 and a key support      

A bullish theme in GBPUSD remains intact. The rally that started Sep 3 has retraced the steep Sep 2 sell-off and highlights a stronger bullish development. This also suggests the corrective cycle between Aug 14 - Sep 3 is over. Sights are on resistance at 1.3595, the Aug 14 high and a bull trigger. A clear break of this hurdle would strengthen a bullish condition. Initial support to watch is 1.3472, the 50-day EMA.        

EURGBP TECHS: Trading Above Support         

• RES 4: 0.8769 High Jul 28 and the bull trigger   
• RES 3: 0.8744 High Aug 7 
• RES 2: 0.8728 76.4% retracement of the Jul 28 - Aug 14 bear leg
• RES 1: 0.8713 High Sep 2  
• PRICE: 0.8655 @ 06:48 BST Sep 12
• SUP 1: 0.8636/8597 50-day EMA / Low Aug 14 and the bear trigger
• SUP 2: 0.8562 50.0% retracement May 29 - Jul 28 upleg 
• SUP 3: 0.8540 Low Jun 30 
• SUP 4: 0.8514 61.8% retracement May 29 - Jul 28 upleg

The latest pullback in EURGBP appears corrective. Support to watch lies at 0.8597, the Aug 14 low. Clearance of this level would reinstate a recent bearish threat. For bulls, a resumption of gains would open 0.8744, the Aug 7 high. Key resistance and the bull trigger is at 0.8769, the Jul 28 high. Note that moving average studies remain in a bull-mode position. This highlights a dominant uptrend. 

USDJPY TECHS: MA Studies Highlight A Dominant Uptrend       

• RES 4: 151.62 61.8% retracement of the Jan 10 - Apr 22 bear leg
• RES 3: 150.92 High Aug 1 and a key resistance 
• RES 2: 149.81 76.4% retracement of the Aug 1 - 14 bear leg 
• RES 1: 148.58/149.14 High Sep 8 / High Sep 3  
• PRICE: 147.34 @ 06:56 BST Sep 12
• SUP 1: 146.21 Low Aug 14  
• SUP 2: 145.86 Low Jul 24
• SUP 3: 145.64 Trendline drawn from the Apr 22 low
• SUP 4: 145.40 50% retracement of the Apr - Aug upleg

USDJPY is unchanged and remains inside its range. Key short-term support is at 146.21, the Aug 14 low and a bear trigger. A break of this level would highlight a stronger bearish threat and highlight a range breakout. This would expose 145.40, a Fibonacci retracement. On the upside, clearance of 149.14, the Sep 3 high is required to reinstate a bullish theme. Note that moving average studies are in a bull-mode position, highlighting a dominant uptrend.    

EURJPY TECHS: Key Resistance Remains Exposed   

• RES 4: 177.08 2.000 proj of the Feb 28 - Mar 18 - Apr 7 price swing 
• RES 3: 175.43 High Jul 11 ‘24 and a key medium-term resistance
• RES 2: 174.86 1.764 proj of the Feb 28 - Mar 18 - Apr 7 price swing
• RES 1: 173.97 High Jul 28 and the bull trigger 
• PRICE: 172.82 @ 07:08 BST Sep 12
• SUP 1: 171.25 50-day EMA
• SUP 2: 169.73/45 Low Jul 31 / 23.6% of the Feb 28 - Jul 28 bull leg
• SUP 3: 168.46 Low Jul 1  
• SUP 4: 167.46 Low Jun 23   

The trend set-up in EURJPY remains bullish and attention is on key resistance and the bull trigger at 173.97, the Jul 28 high. Clearance of this level would confirm a continuation of the bull phase. Moving average studies are in a bull-mode position too, highlighting a primary uptrend. A break of 173.97 would open 174.86, a Fibonacci projection. Key support to watch lies at the 50-day EMA at 171.31.

AUDUSD TECHS: Northbound   

• RES 4: 0.6729 1.236 proj of the Jun 23 - Jul 11 - 17 price swing
• RES 3: 0.6688 High Nov 7 ‘24
• RES 2: 0.6677 1.00 proj of the Jun 23 - Jul 11 - 17 price swing
• RES 1: 0.6669 Intraday high
• PRICE: 0.6659 @ 07:59 BST Sep 12
• SUP 1: 0.6548/6521 20- and 50-day EMA values
• SUP 2: 0.6463/6415 Low Aug 27 / Low Aug 21 / 22 and a bear trigger
• SUP 3: 0.6373 Low Jun 23 
• SUP 4: 0.6354 38.2% retracement of the Apr 9 - Jul 24 upleg

AUDUSD bulls remain in the driver’s seat. This week’s gains plus the breach of 0.6625, the Jul 24 high and bull trigger, confirm a resumption of the uptrend. The climb opens 0.6677, a Fibonacci projection. Moving average studies are in a bull-mode position highlighting a dominant uptrend. Key support to watch is 0.6415, the Aug 21 / 22 low. Initial firm support to monitor lies at 0.6521, the 50-day EMA.   

USDCAD TECHS: Outlook Remains Bullish

• RES 4: 1.4111 High Apr 10  
• RES 3: 1.4019 38.2% retracement of the Feb 3 - Jun 16 bear leg
• RES 2: 1.3925 High Aug 22 and the bull trigger
• RES 1: 1.3890 High Sep 11
• PRICE: 1.3833 @ 08:02 BST Sep 12
• SUP 1: 1.3788/27 50-day EMA / Low Aug 27 and a bear trigger  
• SUP 2: 1.3709 61.8% retracement of the Jul 23 - Aug 22 bull cycle
• SUP 3: 1.3658 76.4% retracement of the Jul 23 - Aug 22 bull cycle 
• SUP 4: 1.3637 Low Jul 25  

Despite yesterday’s pullback, a bull cycle in USDCAD remains intact. The recovery from the Aug 29 low highlights a reversal signal and if correct, marks the end of the corrective pullback between Aug 22 - 29. A continuation higher would open the bull trigger at 1.3925, the Aug 22 high. Support lies at 1.3727, the Aug 29 low. Clearance of this level would instead reinstate a short-term bear theme and expose 1.3709 initially, a Fibonacci retracement.  

FIXED INCOME

BUND TECHS: (Z5) Bull Cycle Still Intact     

• RES 4: 130.27 High Jun 20  
• RES 3: 130.05 76.4% retracement of the Jun 13 - Sep 3 bear cycle    
• RES 2: 129.66 High Jul 22 
• RES 1: 129.50 High Aug 5 and a key resistance  
• PRICE: 129.02 @ 05:35 BST Sep 12
• SUP 1: 128.63/25 20-day EMA / Low Sep 4      
• SUP 2: 127.61 Low Sep 3 and the bear trigger
• SUP 3: 127.46 1.00 proj of the Aug 14 - 15 - 28 price swing  
• SUP 4: 127.13 1.236 proj of the Aug 14 - 15 - 28 price swing  

Recent gains in Bund futures resulted in a break of resistance at 128.87, the Aug 28 high and short-term bull trigger. The climb undermines a recent bearish theme and highlights a stronger reversal. Price has moved through the 129.00 handle, signalling scope for an extension towards 129.50, the Aug 5 high. Key support and the bear trigger has been defined at 127.61, the Sep 3 low. First support is 128.68, the 20-day EMA.       

BOBL TECHS: (Z5) Monitoring Support  

• RES 4: 118.635 1.500 proj of the Aug 25 - 28 - Sep 2 price swing     
• RES 3: 118.561 1.382 proj of the Aug 25 - 28 - Sep 2 price swing  
• RES 2: 118.469 1.236 proj of the Aug 25 - 28 - Sep 2 price swing 
• RES 1: 118.400 High Sep 8 / 10 
• PRICE: 117.990 @ 06:02 BST Sep 12
• SUP 1: 117.920 Low Sep 4    
• SUP 2: 117.690 Low Sep 2    
• SUP 3: 117.630 Low Aug 25  and a key short-term support   
• SUP 4: 117.481 123.6% retracement projection of Aug 25 - 28 rally  

Bobl futures have pulled back from their recent highs. The contract recently breached resistance at 118.260, the Aug 28 high. A break of this level undermines the recent bearish theme and signals scope for a stronger recovery towards 118.469, a Fibonacci projection. On the downside, initial support to watch lies at 117.920, the Sep 4 low. Clearance of this level would highlight a reversal and instead expose 117.690, the Sep 2 low.   

SCHATZ TECHS: (Z5) Bear Trend Resumes    

• RES 4: 107.360 High Jul 22 and 23 (cont)  
• RES 3: 107.240 High Aug 4  
• RES 2: 107.225 High Aug 27 and the bull trigger
• RES 1: 107.145/190 High Sep 11 / High Sep 5 and 8 
• PRICE: 107.015 @ 06:18 BST Sep 12
• SUP 1: 107.010 Intraday low   
• SUP 2: 106.974 1.236 proj of the the Aug 27 - Sep 2 - 8 price swing  
• SUP 3: 106.948 1.382 proj of the the Aug 27 - Sep 2 - 8 price swing
• SUP 4: 106.928 1.500 proj of the the Aug 27 - Sep 2 - 8 price swing

The trend structure in Schatz futures remains bearish and Thursday’s sell-off confirms a resumption of the downtrend. The contract has breached support at 107.050, the Aug 25 and Sep 2 low plus a bear trigger. This maintains the bearish price sequence of lower lows and lower highs. Scope is seen for an extension towards 106.974 next, a Fibonacci projection. Initial resistance is at 107.145, the Sep 11 high.       

GILT TECHS: (Z5) Bull Cycle Intact    

• RES 4: 92.30 High Aug 7
• RES 3: 92.06 High Aug 14      
• RES 2: 92.00 Round number resistance
• RES 1: 91.82 High Sep 11
• PRICE: 91.64 @ Close Sep 11
• SUP 1: 90.65 Low Sep 2
• SUP 2: 90.31/89.36 Low Sep 4 / 3
• SUP 3: 89.22 1.618 proj of the Aug 21 - 27 - 28 price swing 
• SUP 4: 89.00 Round number support   

A recent rally in Gilt futures highlights a stronger corrective cycle and the contract is holding on to its gains. The bull cycle is allowing an oversold trend condition to unwind. Price has breached initial firm resistance at 90.84, the Aug 28 and 29 high. A continuation higher would signal scope for a climb towards 92.06, the Aug 14 high. On the downside, initial support lies at 90.65, the Sep 5 low.    

BTP TECHS: (Z5) Monitoring Resistance      

• RES 4: 121.00 Round number resistance
• RES 3: 120.74 High Aug 5 and the bull trigger
• RES 2: 120.61 High Aug 14 
• RES 1: 120.51 High Sep 10
• PRICE: 120.42 @ Close Sep 11
• SUP 1: 119.06/118.36 Low Sep 4 / 3         
• SUP 2: 118.00 Round number support
• SUP 3: 117.70 2.236 proj of the Aug 5 - 12 - 14 price swing  
• SUP 4: 117.36 2.500 proj of the Aug 5 - 12 - 14 price swing 

The primary trend condition in BTP futures is unchanged, it remains bullish.  The strong rally that started Sep 3 highlights a bullish development and signals the end of the recent corrective pullback between Aug 5 - Sep 3. Key resistance and the bull trigger is 120.74, the Aug 5 high. A break of this hurdle would confirm a resumption of the uptrend. Key support has been defined at 118.36, the Sep 3 low.                          

EQUITIES

EUROSTOXX50 TECHS: (U5) Bear Threat Remains Present  

• RES 4: 5568.00 High Mar 6
• RES 3: 5526.00 High Mar 19 / 20 (cont) 
• RES 2: 5445.00/5522.00 High Aug 26 / 22
• RES 1: 5417.00 High Sep 10 
• PRICE: 5399.00 @ 06:27 BST Sep 12
• SUP 1: 5292.00 Low Sep 2 
• SUP 2: 5280.00 Low Aug 7  
• SUP 3: 5250.02 76.4% retracement of the Aug 1 - 22 rally  
• SUP 4: 5166.00 Low Aug 1 and key support  

A corrective bear cycle in Eurostoxx 50 futures remains in play. Recent weakness resulted in a breach of 5369.48, the 50-day EMA. A clear break of this average strengthens a short-term bearish threat and signals scope for a deeper retracement towards 5166.00, the Aug 1 low and a key support. On the upside, the contract has recovered above the 20-day EMA - a bullish development for now. A stronger reversal would open 5445.00, Aug 26 high.     

E-MINI S&P: (U5) Fresh Cycle High   

• RES 4: 6706.00 2.236 proj of the Apr 7 - 10 - 21 price swing 
• RES 3: 6673.37 2.236 proj of the May 23 - Jun 11 - 23 price swing
• RES 2: 6633.42 2.0% 10-dma envelope   
• RES 1: 6600.00 Round number resistance  
• PRICE: 6591.25 @ 07:21 BST Sep 12
• SUP 1: 6481.60 20-day EMA
• SUP 2: 6380.81 50-day EMA 
• SUP 3: 6313.25 Low Aug 6 
• SUP 4: 6239.50 Low Aug 1 and a key support

A bull cycle in S&P E-Minis remains intact and Thursday’s gains reinforce current conditions. The contract has once again traded to a fresh cycle high. This confirms a resumption of the uptrend and maintains the bullish price sequence of higher highs and higher lows. Sights are on the 6600.00 handle where a break would strengthen the bull theme and open 6673.37, a Fibonacci projection. Initial support to watch is 6481.60, the 20-day EMA.   

COMMODITIES

BRENT TECHS: (X5) Bearish Outlook    

• RES 4: $79.16 - 2.618 proj of the Apr 9 - 23 - May 5 price swing
• RES 3: $77.28 - 2.382 proj of the Apr 9 - 23 - May 5 price swing
• RES 2: $76.39 - High Jun 23 and a bull trigger 
• RES 1: $69.53/71.93 - High Sep 2 / High Jul 30 and a key resistance 
• PRICE: $65.90 @ 07:01 BST Sep 12
• SUP 1: $64.50 - Low Jun 30 and a key short-term support
• SUP 2: $60.82 - Low May 30
• SUP 3: $58.37 - Low May 5
• SUP 4: $57.81 - Low Apr 9 and a key support   

Brent futures have recovered from their most recent lows. Short-term gains are for now, considered corrective and a bear cycle remains intact. Sights are on $64.50, the Jun 30 low, where a clear break would confirm a continuation of the bear leg. This would open $60.82, the May 30 low. Key short-term resistance has been defined at $71.93, the Jul 30 high. Clearance of this level would cancel a bear theme.  

WTI TECHS: (V5) Bearish Theme

• RES 4: $77.85 - 2.794 proj of the Apr 9 - 23 - May 5 price swing
• RES 3: $75.65 - 2.500 proj of the Apr 9 - 23 - May 5 price swing
• RES 2: $74.25 - High Jun 23 and a bull trigger 
• RES 1: $66.03/69.36 - High Sep2 / High Jul 30 and key resistance   
• PRICE: $63.79 @ 07:12 BST Sep 12
• SUP 1: $61.29 - Low Aug 13 and the bear trigger 
• SUP 2: $57.71 - Low May 30
• SUP 3: $54.80 - Low May 5
• SUP 4: $54.03 - Low Apr 9 and a key support

The trend condition in WTI futures is unchanged - a bear cycle remains intact and recent short-term gains are considered corrective. The pullback from the Sep 2 high highlights a possible reversal and the end of the corrective phase. Initial resistance to watch is $66.03, the Sep 2 high. Key short-term resistance has been defined at $69.36, the Jul 30 high. A stronger resumption of weakness would open $57.71, the May 30 low. 

GOLD TECHS: Trend Needle Points North    

• RES 4: $3716.5 - 2.500 proj of the Dec 30 ’24 - Apr 3 - 7 price swing 
• RES 3: $3700.0 - Round number resistance
• RES 2: $3674.8 - 2.382 proj of the Dec 30 ’24 - Apr 3 - 7 price swing
• RES 1: $3674.3 - High Sep 9              
• PRICE: $3653.3 @ 07:16 BST Sep 12
• SUP 1: $3579.7 - Low Sep 8  
• SUP 2: $3504.1 - 20-day EMA
• SUP 3: $3420.9 - 50-day EMA
• SUP 4: $3311.6 - Low Aug 20  

Gold remains in a clear bull cycle and continues to trade at its recent highs. The yellow metal has traded to  a fresh all-time high again this week. The break higher confirms a resumption of the primary uptrend and an extension of the sequence of higher highs and higher lows. The next objective is $3674.8, a Fibonacci projection. Initial firm support lies at $3504.1, the 20-day EMA.               

SILVER TECHS: Continues To Appreciate

• RES 4: $43.000 - Round number resistance
• RES 3: $42.606 - 2.236 proj of the Jul 31 - Aug 14 - 20 price swing
• RES 2: $42.323 - 1.764 proj of the Apr 7 - 25 - May 15 swing
• RES 1: $42.173 - Intraday high       
• PRICE: $42.131 @ 08:13 BST Sep 12
• SUP 1: $39.986 - 20-day EMA 
• SUP 2: $38.604 - 50-day EMA
• SUP 3: $36.216 - Low Jul 31 and a key support   
• SUP 4: $35.285 - Low Jun 24

Trend signals in Silver remain bullish. The metal is trading higher and has today delivered  a fresh cycle high. This confirms a resumption of the uptrend and maintains the price sequence of higher highs and higher lows. Moving average studies are in a bull-mode position, reinforcing current trend conditions. Sights are on $42.323 next, a Fibonacci projection. Initial support to watch is $39.986, the 20-day EMA.