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Technical analysis: Euribor Futures

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Euribor – March 2010

Thu, Nov 5 2009, 08:25 GMT
by Nicole Elliott

Mizuho Corporate Bank  |  View company's profile


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Comment: Slow work but Euribor contracts are trading higher, propelled by trendline and Ichimoku cloud support, the Lagging Span helped up by the 26-day moving average. Price action since September looks increasingly like ‘triangle’ consolidation and, being a continuation pattern, hints at a break to new contract highs this month – helped along by moving averages which have turned bullish. Central bankers will probably do anything to avoid the merest whiff of year-end pressures as seen in 2007 and to a lesser extent in 2008.

Strategy: Attempt small longs at 99.075/99.025; stop well below 99.000. Add to longs on a sustained break above 99.165 for 99.250/99.320 medium term.


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