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7 Nov 2014
Global markets: A complete snapshot and summary
FXStreet (Guatemala) - Analysts at BAML explained that in the near term, they are growing concerned about the state of the US $ advance. They have offered commentary around a number of markets.
Key Quotes:
“Across G10, the US $ is looking increasingly extended and at increasing risk of a correction. To be clear, we are still US $ bulls (and LONG TERM US $ bulls at that), but evidence says that a near term correction is drawing close. Bulls need to use caution.”
“US 2yr yields:
Bearish. The s/term bear trend should continue into the confluence of l/term support between 49.4bps/61.1bps. Into here look for renewed signs of topping. Bulls gain control on a break of the Oct-30 low at 46.1bps”.
“US 5yr yields:
Bearish The trend is higher for 3.5wk channel support at 1.74%/1.75%. This should be only a temporary stopping point ahead the 14m range highs at 1.833%/1.879%. Bulls need a break of 1.598% to gain control”.
“US 10yr yields:
Bearish. The stair step advance continues towards 2.46%/2.45%, retracement and channel support, with longer term targets seen to 2.583%/2.594%. A move below 2.301% (Old Oct-23 high) is needed to indicate topping”.
“US 30yr yields:
Bearish. The completing Triangle / contracting range trade keeps the focus higher for 3.188% and eventually YTD t/line support at 3.268%. Back below the Oct-30 low at 3.006% points to a top and bullish turn”.
“S&P500:
Bullish. Despite some preliminary signs of micro-term stalling, against 1995.25/1989.75 support, stay bullish for 3yr channel resistance at 2066. Bigger picture, bears need a break of the 50d at 1961.75, to indicates a top and turn”.
€/$:
A late stage decline. We are bearish, but into the 200m average (now 1.2306) we look for a greater signs of basing and a corrective squeeze higher. Back above 1.2470 confirms a base and corrective turn higher towards 1.2560/1.2625”.
“$/¥:
A late stage advance. While we are still bullish for a deeper probe of the 115.28/117.70 target zone, this is a very late stage advance. We do not expect 117.70 to give way. Back below 114.06/113.117 confirms a top, exposing 110.09”.
“Spot Gold:
Bearish. Against 1180/1184, we look for further weakness for 1087 before greater signs of a base and corrective bounce materializes”.
Key Quotes:
“Across G10, the US $ is looking increasingly extended and at increasing risk of a correction. To be clear, we are still US $ bulls (and LONG TERM US $ bulls at that), but evidence says that a near term correction is drawing close. Bulls need to use caution.”
“US 2yr yields:
Bearish. The s/term bear trend should continue into the confluence of l/term support between 49.4bps/61.1bps. Into here look for renewed signs of topping. Bulls gain control on a break of the Oct-30 low at 46.1bps”.
“US 5yr yields:
Bearish The trend is higher for 3.5wk channel support at 1.74%/1.75%. This should be only a temporary stopping point ahead the 14m range highs at 1.833%/1.879%. Bulls need a break of 1.598% to gain control”.
“US 10yr yields:
Bearish. The stair step advance continues towards 2.46%/2.45%, retracement and channel support, with longer term targets seen to 2.583%/2.594%. A move below 2.301% (Old Oct-23 high) is needed to indicate topping”.
“US 30yr yields:
Bearish. The completing Triangle / contracting range trade keeps the focus higher for 3.188% and eventually YTD t/line support at 3.268%. Back below the Oct-30 low at 3.006% points to a top and bullish turn”.
“S&P500:
Bullish. Despite some preliminary signs of micro-term stalling, against 1995.25/1989.75 support, stay bullish for 3yr channel resistance at 2066. Bigger picture, bears need a break of the 50d at 1961.75, to indicates a top and turn”.
€/$:
A late stage decline. We are bearish, but into the 200m average (now 1.2306) we look for a greater signs of basing and a corrective squeeze higher. Back above 1.2470 confirms a base and corrective turn higher towards 1.2560/1.2625”.
“$/¥:
A late stage advance. While we are still bullish for a deeper probe of the 115.28/117.70 target zone, this is a very late stage advance. We do not expect 117.70 to give way. Back below 114.06/113.117 confirms a top, exposing 110.09”.
“Spot Gold:
Bearish. Against 1180/1184, we look for further weakness for 1087 before greater signs of a base and corrective bounce materializes”.