BUND TECHS: (Z5) Corrective Phase Exposes Support At The 50-Day EMA
- RES 4: 130.99 76.4% retracement of Jun 13 - Sep 25 bear leg (cont)
- RES 3: 130.80 High Jun 13 and key resistance
- RES 2: 130.63 1.500 proj of the Sep 3 - 10 - 25 price swing
- RES 1: 130.07/59 High Oct 24 / 17 and the bull trigger
- PRICE: 129.63 @ 05:44 GMT Oct 28
- SUP 1: 129.29 Low Oct 27
- SUP 2: 129.08 50-day EMA
- SUP 3: 128.52 76.4% retracement of the Sep 25 - Oct 17 Bull leg
- SUP 4: 128.25 Low Oct 7
Bund futures are unchanged and continue to trade closer to their recent lows. The move down that started on Oct 17 is considered corrective and this has allowed an overbought trend condition to unwind. Initial key support at 129.46, the 20-day EMA, has been breached. This exposes the 50-day EMA, currently at 129.10. For bulls, a reversal would refocus attention on the key resistance at 130.59, the Oct 17 high. First resistance is 130.07, Oct 24 high.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
USDJPY TECHS: Corrective Pullback
- RES 4: 151.62 61.8% retracement of the Jan 10 - Apr 22 bear leg
- RES 3: 151.21 High Mar 28
- RES 2: 150.92 High Aug 1 and a key resistance
- RES 1: 149.96 High Sep 26
- PRICE: 148.78 @ 07:05 BST Sep 29
- SUP 1: 148.38/147.55 High Sep 22 / 50-day EMA
- SUP 2: 146.77 Low Sep 18
- SUP 3: 145.49 Low Sep 17 and a pivot support
- SUP 4: 144.23 Low Jul 7
USDJPY traded higher last week as the pair extended the recovery that started Sep 17. A bullish candle on Sep 17 - a hammer - provided an early reversal signal and remains valid. Also, MA studies remain in a bull-mode condition, highlighting a dominant uptrend. 149.14, the Sep 3 high, has been cleared. Sights are on 150.92, the Aug 1 high and key resistance. Pivot support is 145.49, Sep 17 low. Short-term weakness is considered corrective.
RATINGS: Upgrades For Spain, Negative Outlook Action For France
Sovereign rating reviews of note from after hours on Friday include:
- Fitch upgraded {SP} Spain to A; Outlook Stable
- Fitch affirmed {SW} Sweden at AAA; Outlook Stable
- Moody's upgraded {SP} Spain to A3, outlook stable
- Morningstar DBRS confirmed {HR} Croatia at A, Stable Trend
- Scope Ratings affirmed {HR} Croatia at A-; Outlook changed to Positive
- Scope Ratings affirmed {FR} France at AA-; Outlook changed to Negative
GILT TECHS: (Z5) Bearish Structure
- RES 4: 92.30 High Aug 7
- RES 3: 92.06 High Aug 14
- RES 2: 92.00 Round number resistance
- RES 1: 91.28/82 High Sep 24 / 11
- PRICE: 90.50 @ Close Sep 26
- SUP 1: 90.26/89.94 Low Sep 26 / 76.4% of the Sep 3 - 11 correction
- SUP 2: 90.31/89.36 Low Sep 4 / 3
- SUP 3: 89.36 Low Sep 3
- SUP 4: 89.22 1.618 proj of the Aug 21 - 27 - 28 price swing
Gilt futures traded lower late last week. The move down strengthens a bearish theme and does suggest the end of the recent corrective phase between Sep 3 - 11. Note that on the continuation chart, moving average studies are in a bear-mode position, highlighting a dominant downtrend. A continuation lower would open 89.94, a Fibonacci retracement. Initial resistance to watch is 91.28, the Sep 24 high.
