SEP 13 EURODOLLARS:
Support: 99.525: Support level back to 6/20
99.515: 4/3 & 5/2 highs, settlement on 6/15, support on 6/18, low on 6/21
99.500: high trade from 4/12-4/19 & 4/26-4/27, low from 5/1-5/4, settle on 5/7
99.490: high trades on 6/7 & 6/11
Resistance: 99.535: high on 6/18 & 6/19, settlement on 6/20
99.555: high trade on 6/20
99.560: 2/3 and 3/2 highs and mid-August support.
99.570: 9/21/11 & 3/2 high trade.
Comment: Today's positive action is in the context of a broader negative move in our primary directional indicators.
BUNDS (German 10-yr): Bunds seem to be in a consolidation mode near a support level. Some increase in Volume seen.
Support: 141.50: general support and resistance inflection area since 6/13 lows.
140.00: resistance in late April and early May
Resistance: 142.45: 5/14 & 5/16 highs, support & resistance inflection 5/17-5/23
Comment: Technically, Bunds are shifting to a less overtly negative bias. Trend is showing signs of bottom and Momentum's negative bias is decelerating. Rate of Change is rising but that has been slowing. With the RSI bouncing out of the Oversold conditions from last week, some moderating of the recent negative bias is in place. However, Tuesday's material rise in Volume on reversal action is a poor sign for the Bunds. Look for failure at technically significant levels.
We saw another fall in Volume in the continuing positive follow-through from last week's post summit rally.
Along with the U.S. Twos, the Schatz falling will end up being counter to official policy desires so we have our doubts as to any negative bias sustainability.
Support: 110.50: psychological level
110.445: support in early April.
110.355: resistance in late March/early April, at various times support or resistance going back to late December.
Resistance: 110-59: resistance zone in early April, support and resistance inflection in late April/early May, support on 6/6, resistance on 6/14 & 6/15
110.625: 6/25 high and 6/11 low
110.6756/8 settlement and level of declining trend line drawn from 6/6 high.
Comment: Schatz's technical pressure is now shifting to with Trend and Momentum having already or about to turn positive. This is in keeping with Central bank policy.
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