GILT TECHS: Trend Direction Remains Down
- RES 4: 92.88 High Jan 2
- RES 3: 91.61 20-day EMA
- RES 2: 91.58 High Jan 8
- RES 1: 90.31 High Jan 9
- PRICE: 89.25 @ Close Jan 14
- SUP 1: 88.96 Low Jan 13
- SUP 2: 88.87 2.764 proj of the Dec 20 -27 - Jan 2 price swing
- SUP 3: 88.53 3.000 proj of the Dec 20 -27 - Jan 2 price swing
- SUP 4: 88.19 3.236 proj of the Dec 20 -27 - Jan 2 price swing
The trend condition in Gilt futures is unchanged, the direction remains down and last week’s fresh cycle lows reinforce current conditions. Recent weakness also highlights an acceleration of the trend. Sights are on 88.87 next, a Fibonacci projection. Initial resistance is at 90.31, the Jan 9 high. Resistance at the 20-day EMA, is at 91.61. The EMA is seen as an important hurdle for bulls.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
EUROSTOXX50 TECHS: (Z4) Trend Needle Points North
- RES 4: 5184.22 3.236 proj of the Nov 19 - 25 - 27 price swing
- RES 3: 5150.00 3.00 proj of the Nov 19 - 25 - 27 price swing
- RES 2: 5106.00 High Sep 30 and a bull trigger
- RES 1: 5015.00 High Oct 29
- PRICE: 4963.00 @ 06:32 GMT Dec 16
- SUP 1: 4902.90/4844.00 20-day EMA / High Nov 25
- SUP 2: 4760.00 Low Dec 2
- SUP 3: 4699.00 Low Nov 19 and bear trigger
- SUP 4: 4707.00 Low Aug 9
A bull cycle in the Eurostoxx 50 futures contract remains intact and price continues to trade closer to its recent highs. The contract has recently breached the 50-day EMA. The clear break of this average strengthens a bullish theme and note that 4961.00, the Nov 6 high, has also been cleared. Sights are on 5015.00 next, the Oct 29 high. Key support is 4699.00, the Nov 19 low. Initial support to watch lies at 4902.90, the 20-day EMA.
EURGBP TECHS: Monitoring Resistance At The 50-Day EMA
- RES 4: 0.8448 High Oct 31 and reversal trigger
- RES 3: 0.8376 High Nov 19 and a bull trigger
- RES 2: 0.8356 High Nov 27
- RES 1: 0.8330 50-day EMA
- PRICE: 0.8322 @ 06:43 GMT Dec 16
- SUP 1: 0.8225 Low Dec 11
- SUP 2: 0.8203 Low Mar 7 2022 and a major support
- SUP 3: 0.8200 Round number support
- SUP 4: 0.8188 1.00 proj of the Oct 31 - Nov 11 - 19 price swing
EURGBP has reversed higher from last week’s 0.8225 low (Dec 11). Gains are considered corrective and attention is on 0.8330, the 50-day EMA. A clear break of this EMA would undermine the bear theme and signal scope for a stronger recovery. For bears, a reversal lower would refocus attention on 0.8225. Clearance of this level would expose the major support at 0.8203, the Mar 7 ‘22 low and the lowest point of a multi-year range.
EUROZONE T-BILL ISSUANCE: W/C December 16, 2024
France is due to sell bills this week. We expect issuance to be E6.6bln in first round operations, down from E22.8bln last week.
- This afternoon, France will come to the market to sell up to E6.6bln of the 8/13/28/50-week BTFs: E0.4-0.8bln of the 8-week Feb 12, 2025 BTF, E2.7-3.1bln of the 13-week Mar 19, 2025 BTF, E1.1-1.5bln of the new 28-week Jul 2, 2025 BTF, and E0.8-1.2bln of the 50-week Dec 3, 2025 BTF.
For more on future auctions see the full MNI Eurozone/UK T-bill auction calendar here.
