EURUSD is unchanged and continues to hold on to the bulk of its recent gains. The breach of 1.1419, May 26 high, confirmed an extension of the current bull cycle and sights are on 1.1573, the Apr 21 high and bull trigger. MA studies are in a bull-mode position, highlighting a dominant uptrend. Support to watch is 1.1232, the 50-day EMA. A clear break of this average would undermine the bull theme. Initial support is 1.1356, the 20-day EMA.
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ACGBs (YM -6.0 & XM -6.5) are sharply cheaper and near Sydney session lows.
A bull cycle in Bund futures remains intact and short-term weakness is considered corrective. However, the contract maintains a softer tone and has traded through support at the 50-day EMA, at 130.61. This signals scope for a deeper retracement and opens 129.92, the Apr 11 low. A reversal higher would highlight the end of the corrective phase. Attention would turn to key resistance and the bull trigger, at 132.03, the Apr 7 high.
Asia stocks have been in a positive mood today with gains across all major markets following positive noises coming out of the US China discussions. Chinese tech names have performed strongly whilst Pharma companies have struggled given President Trump's plans to reduce prescription costs on pharmaceuticals.
Overall markets were strong with gains of over 2% by some key bourses.