The trend needle in GBPUSD continues to point south. A bearish sequence of lower lows and lower highs and Wednesday’s fresh trend low print reinforce bearish conditions. The trend is oversold, however, this does not appear to be a concern for bears. Key support at 1.1412, Mar 20 2020 low, has been pierced. This is a major support and a clear break would strengthen bearish conditions. Firm resistance is at 1.1718, the 20-day EMA.
Find more articles and bullets on these widgets:
Aussie bonds are at cheapest levels of the day as we move towards the Sydney close, with the move in futures extending through overnight lows in recent dealing. Cash ACGBs run 4.5-6.5bp cheaper across the curve, bear flattening, while YM and XM are -5.0, respectively. Bills run 1 to 9 ticks cheaper through the reds, bear steepening.
Gilt futures remain above last week’s 116.44 low. The short-term outlook is bullish. Moving average studies are in a bull mode set-up and gains since Jun 16 have established a bullish price sequence of higher highs and higher lows. Key trend support is at 114.08, the Jul 8 low. The next firm support zone to watch is 116.41, the 50-day EMA and 116.61, trendline support drawn from the Jun 16 low. A resumption of gains would open 119.84, the bull trigger.
EUROSTOXX 50 futures trend conditions remain bullish and yesterday’s pullback is considered corrective. Price has recently cleared the 76.4% retracement of the Jun 6 - Jul 5 downleg, at 3722.40. The breach opens 3811.00 next, the Jun 8 high, ahead of 3840.00, the Jun 6 high. Key support and the bear trigger is unchanged at 3343.00, the Jul 5 low. Initial firm support to watch is 3607.80, the 50-day EMA.