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Technical analysis: EuroDollar Futures

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Eurodollar Future – March 2010

Fri, Oct 16 2009, 08:12 GMT
by Nicole Elliott

Mizuho Corporate Bank


Comment: Eurodollar futures have proved remarkably resilient despite Euribor ones edging lower and Treasury yields backing up by more than we had expected. Technically this contract is holding in a tiny ‘triangle’ at the apex of a very large ‘wedge’, giving mixed signals. Is in no longer overbought but then again momentumis nil. We shall continue to allow for a small initial dip to trendline support and possibly the Ichimoku ‘cloud’, though note that this might be achieved by creeping sideways across the page.

Strategy: Possibly attempt the tiniest of shorts at 99.405; stop above 99.500. Target 99.320/99.275. Then watch for signs of basing before going long again using a stop below 99.090.


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Mizuho Corporate Bank  | 1-3-3, Marunouchi, Chiyoda-ku, Tokyo 100-8210
http://www.mizuho-cb.co.uk | Nicole.Elliot@mhcb.co.uk

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