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Technical analysis: EuroDollar Futures

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Eurodollar Future – March 2010

Fri, Nov 6 2009, 09:08 GMT
by Nicole Elliott

Mizuho Corporate Bank


Comment: Investors appear to be as happy now with five-year TNotes as they are with two’s, so benchmark yields look set to test the pivotal 2.25% level. Front Eurodollar and Fed Funds futures have again inched up to new contract highs though the European cash market is as dead as a dodo. Technically this contract has broken above the top of a ‘triangle’ at the apex of a very large ‘wedge’, moving averages and the Ichimoku ‘cloud’ are still very much in bullish mode. It ought to follow-through to the upside but as we approach 100.00, and if year-end pressures loom, be careful.

Strategy: Attempt small longs at 99.545, adding to 99.485; stop well below 99.450. 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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