EUROSTOXX50 TECHS: (Z5) Bullish Price Sequence
- RES 4: 5800.00 Round number resistance
- RES 3: 5777.41 1.382 proj of the Aug 1 - 22 - Sep 2 price swing
- RES 2: 5727.18 1.236 proj of the Aug 1 - 22 - Sep 2 price swing
- RES 1: 5717.00 High Oct 21
- PRICE: 5678.00 @ 06:52 BST Oct 22
- SUP 1: 5596.71 20-day EMA
- SUP 2: 5514.13 50-day EMA
- SUP 3: 5423.00 Low Sep 25
- SUP 4: 5366.00 Low Sep 17
The trend direction in Eurostoxx 50 futures is up and This week’s gains reinforce this theme. The breach of 5689.00, the Oct 2 high and bull trigger, confirms a resumption of the uptrend. This maintains the price sequence of higher highs and higher lows and note that MA studies are in a bull-mode position, highlighting a dominant M/T uptrend. Sights are on 5727.18, a Fibonacci projection. First support lies at 5596.71, the 20-day EMA.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
RATINGS: Italy Upgraded At Fitch, France Downgraded At DBRS
Sovereign rating reviews of note from after hours on Friday include:
- Fitch upgraded Italy to BBB+; Outlook Stable
- Moody's affirmed Poland at A2; Outlook changed to Negative from Stable
- S&P affirmed Ireland at AA; Outlook Positive
- Morningstar DBRS upgraded Cyprus to A, Stable Trend
- Morningstar DBRS downgraded France to AA, Trend Changed to Stable
- Morningstar DBRS confirmed Norway at AAA, Stable Trend
- Morningstar DBRS confirmed Finland at AA (high), Stable Trend
- Morningstar DBRS confirmed the United States of America at AAA, Stable Trend
- Scope Ratings affirmed the Czech Republic at AA-; Outlook Stable
GILT TECHS: (Z5) Trading Below Its Recent Highs
- RES 4: 92.30 High Aug 7
- RES 3: 92.06 High Aug 14
- RES 2: 92.00 Round number resistance
- RES 1: 91.14/82 20-day EMA / High Sep 11
- PRICE: 90.71 @ Close Sep 19
- 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
Gilt futures gapped lower on Friday extending the pullback from recent highs. Despite the sell-off, a bull cycle remains intact and a recent rally highlights a stronger corrective cycle. Note that the move higher has allowed an oversold trend condition to unwind. Price has breached initial firm resistance at 90.84, the Aug 28 and 29 high. A resumption of gains would open 92.06, the Aug 14 high. Initial support lies at 90.65, the Sep 5 low.
USDJPY TECHS: Holding On To Its Latest Gains
- 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: 149.64 76.4% retracement of the Aug 1 - Sep 17 bear leg
- RES 1: 148.38/149.14 Intraday high / High Sep 3
- PRICE: 148.27 @ 06:58 BST Sep 22
- SUP 1: 146.77/145.49 Low Sep 18 / 17 and a pivot support
- SUP 2: 145.40 50% retracement of the Apr - Aug upleg
- SUP 3: 144.10 61.8% retracement of the Apr - Aug upleg
- SUP 4: 143.45 Low Jul 3
USDJPY recovered sharply from last Wednesday’s low and the pair is holding onto its latest gains. A bullish candle pattern on Sep 17 - a hammer formation - provided an early reversal signal. Last Wednesday, the pair breached a number of important short-term support levels, however, this has not confirmed a bearish threat. A continuation higher would open 149.14, the Sep 3 high. Pivot support is 145.49, the Sep 17 low.
