* A quieter Overnight session for Bund, just a 10 ticks range going into the Cash open, now 15 pos...
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A bull cycle in BTP futures remains intact and last Thursday’s pullback is for now considered corrective. Resistance and a bull trigger at 119.70, the Apr 24 high, has been cleared. This confirms a resumption of the uptrend and opens 121.12 next, a Fibonacci projection. Key support to watch lies at 118.51, the May 14 low. A clear break of this level would highlight a reversal. First support lies at 120.08, the 20-day EMA.
Gilt futures continue to trade closer to their recent highs. The latest rally undermines the recent bearish theme - a key short-term resistance at 91.87, the May 20 high, has been cleared. This signals scope for an extension higher and sights are on 92.79, a Fibonacci projection. Initial firm support has been defined at 91.44, the Jun 4 low. A break of this support is required to signal a possible reversal.
The trend set-up in EURJPY remains bullish and last week’s gains reinforce current conditions. Friday’s gains resulted in a print above key resistance at 165.21, the May 13 high. A clear break of this hurdle would confirm a resumption of the uptrend and open 166.10, the Nov 6 2024 high. Key short-term support lies at 161.09, the May 23 low, where a break is required to highlight a stronger reversal and suggest scope for a deeper correction.