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Technical analysis: EuroDollar Futures

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Eurodollar Future – March 2010

Fri, Oct 30 2009, 08:54 GMT
by Nicole Elliott

Mizuho Corporate Bank


Comment: Money market futures remain well bid and US 2-year TNotes are getting used to the idea that they yield less than 1.00% (as do 2014 TIPS). Front Eurodollar and Fed Funds futures have sneaked up to new contract highs though liquidity in the European cash market remains dire. Technically this contract has broken above the top of a ‘triangle’ at the apex of a very large ‘wedge’, giving mixed signals. Moving averages and the Ichimoku ‘cloud’ are still very much in bullish mode. It is no longer overbought and bullish momentum very low – as one would expect when creeping towards 100.00. Approach with care.

Strategy: Possibly attempt tiny longs at 99.480; stop below 99.375. Upside target 99.650.


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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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