Risk is off and the dollar and US bonds enjoy a safe heaven bid on behalf of the euro and EuroStoxx which are again punished in this environment… EURUSD failed no nail a low and could extend the slide – with the next key hurdle located at 1.1975 in mind… EuroStoxx50 seems headed to below the critical 2,121 ref – under which a fresh yearly low would become increasingly likely… EURJPY is also still on a slippery slope and looks set to extend losses – with 94.27 being the next milestone en route the euro life-time low later… EURSEK & EURNOK could extend consolidations in time and price – 8.44\46 & 7.41\43 before down looks possible… EURPLN should expand gains further and over 4.2580 would become bullishly exciting… The 10y German Bund survived the “outlook downgrade adjustment” yesterday while respecing support in the mid-144s… Further SPA/GER 10y widening towards +685bps remains a bullish Bund driver… The 5yr BBVA CDS soon likely trades at a fresh record wide >515bps… SP500 increse pressure on key refs below at 1320, 1303 & 1298…
Click here to read the full report: Technical Alert
SEB tech team