Steve Miley, MSTA
MarketChartist
Bund future bias back through 149.82/79 for corrective top
Despite a modest bounce effort Tuesday, the inside pattern leaves a still negative correction risk into midweek from the Friday bullish rally and setback.
We look for a further dip, with risk through the 149.82/79 area now completing a topping structure (Head & Shoulders?) to signal a deeper correction through 149.54 for the “neckline” support at 149.34, but trying to hold firmer support at 149.07.
However, the Friday surge through targets at 150.25 and 150.48 points to potential further upside (now into latter August), with extension risk through 150.70 to 151.00 and 151.18.
WHAT CHANGES THIS?
- Below 149.79 eases bull risks; through 149.07 signals a neutral tone, only shifting negative below 148.67.
2 Hour Bund Sept Future Chart
Daily Bund Sept Future: Adjusted Continuation Chart
THERE IS SUBSTANTIAL RISK OF LOSS IN TRADING FUTURES, OPTIONS AND FX PRODUCTS. INFORMATION PROVIDED WITHIN THIS MATERIAL SHOULD NOT BE CONSTRUED AS ADVICE
Recommended Content
Editors’ Picks
EUR/USD clings to gains above 1.0750 after US data
EUR/USD manages to hold in positive territory above 1.0750 despite retreating from the fresh multi-week high it set above 1.0800 earlier in the day. The US Dollar struggles to find demand following the weaker-than-expected NFP data.
GBP/USD declines below 1.2550 following NFP-inspired upsurge
GBP/USD struggles to preserve its bullish momentum and trades below 1.2550 in the American session. Earlier in the day, the disappointing April jobs report from the US triggered a USD selloff and allowed the pair to reach multi-week highs above 1.2600.
Gold struggles to hold above $2,300 despite falling US yields
Gold stays on the back foot below $2,300 in the American session on Friday. The benchmark 10-year US Treasury bond yield stays in negative territory below 4.6% after weak US data but the improving risk mood doesn't allow XAU/USD to gain traction.
Bitcoin Weekly Forecast: Should you buy BTC here? Premium
Bitcoin (BTC) price shows signs of a potential reversal but lacks confirmation, which has divided the investor community into two – those who are buying the dips and those who are expecting a further correction.
Week ahead – BoE and RBA decisions headline a calm week
Bank of England meets on Thursday, unlikely to signal rate cuts. Reserve Bank of Australia could maintain a higher-for-longer stance. Elsewhere, Bank of Japan releases summary of opinions.