BOBL TECHS: (Z5) Fresh Cycle High
- RES 4: 119.780 High Apr 22 (cont)
- RES 3: 119.600 High May 7 (cont)
- RES 2: 119.250 76.4% of the Apr 7 - Aug 15 bear leg (cont)
- RES 1: 119.000 Round number resistance
- PRICE: 118.940 @ 06:18 BST Oct 17
- SUP 1: 118.560 Low Oct 16
- SUP 2: 118.330/118.112 Low Oct 13 / 20-day EMA
- SUP 3: 117.880 Low Oct 9
- SUP 4: 117.710 Low Oct 6
A strong rally in Bobl futures so far this week reinforces the current uptrend that started Sep 25. The contract has traded higher again, today, as the impulsive bull wave extends. Sights are on the 119.00 handle next. A break of this level would open 119.25, a Fibonacci retracement point. Note that the contract is overbought, a pullback would allow this condition to unwind. Initial key support is at the 20-day EMA, at 118.112.
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EURGBP TECHS: Bullish Outlook
- RES 4: 0.8769 High Jul 28 and the bull trigger
- RES 3: 0.8744 High Aug 7
- RES 2: 0.8728 76.4% retracement of the Jul 28 - Aug 14 bear leg
- RES 1: 0.8713 High Sep 2
- PRICE: 0.8689 @ 06:31 BST Sep 17
- SUP 1: 0.8640/8597 50-day EMA / Low Aug 14 and the bear trigger
- SUP 2: 0.8562 50.0% retracement May 29 - Jul 28 upleg
- SUP 3: 0.8540 Low Jun 30
- SUP 4: 0.8514 61.8% retracement May 29 - Jul 28 upleg
The latest pullback in EURGBP appears corrective and Tuesday’s rally signals the end of the corrective phase. Support to watch lies at 0.8597, the Aug 14 low. Clearance of this level would cancel a bull theme and reinstate a recent bearish threat. For bulls, a stronger resumption of gains would open 0.8744, the Aug 7 high. Key resistance and the bull trigger is at 0.8769, the Jul 28 high. First support is 0.8640, the 50-day EMA.
CHINA: Country Wrap: Focus on BRIC Strengthens
Market Summary: All of China's major bourses are up with the Hang Seng leading the charge. The HSI is up +1.41%, the CSI 300 +0.60%, Shanghai +0.40% and Shenzhen up +0.82%. The Yuan Reference Rate at 7.1013 Per USD; Estimate 7.1027 and China's 10-Yr CGB is at 1.78%.
- China is willing to strengthen cooperation with BRICS member states in emerging sectors such as artificial intelligence, while prioritizing partnerships in areas such as electric vehicles and solar and hydrogen power, the country's top industry regulator said on Tuesday. (source China Daily)
- China announced wide-ranging measures to stimulate domestic demand by promoting the consumption of services such as sports and entertainment, the latest attempt to help an economy grappling with slower growth. The plan, issued on Tuesday by the Ministry of Commerce along with several other departments, doesn’t introduce more funding or subsidies for the services sector. But the 19 measures it outlines indicate the government will use its budget to develop the necessary infrastructure and guide banks to lend more to services providers along with consumers. (source BBG)
SCHATZ TECHS: (Z5) Trend Structure Remains Bearish
- RES 4: 107.240 High Aug 4
- RES 3: 107.225 High Aug 27 and the bull trigger
- RES 2: 107.145/190 High Sep 11 / High Sep 5 and 8
- RES 1: 107.050 Low Aug 25 and Sep 2 and a recent breakout level
- PRICE: 107.015 @ 06:02 BST Sep 17
- SUP 1: 106.965 Low Sep 12
- SUP 2: 106.948 1.382 proj of the the Aug 27 - Sep 2 - 8 price swing
- SUP 3: 106.928 1.500 proj of the the Aug 27 - Sep 2 - 8 price swing
- SUP 4: 106.900 Round number support
The trend structure in Schatz futures is unchanged, it remains bearish and last week’s sell-off confirms a resumption of the downtrend. The contract has breached support at 107.050, the Aug 25 and Sep 2 low plus a bear trigger. This maintains the bearish price sequence of lower lows and lower highs. Scope is seen for an extension towards 106.948 next, a Fibonacci projection. Initial resistance is at 107.050, Aug 25 and Sep 2 low.
