Technical Weekly 100306

EQUITIES
The short-term trend on equity markets is now bearish but the medium and long term trend are still in uptrend which means that the last week correction do not jeopardize the bullish scenario.
The chart below shows the DJ Euro Stoxx 50 with three momentums indicators and as you can see the last one (short term) is down, but the second (mid term) and the first one (long term) are still rising.
There is a risk of seeing more significant short-term correction toward the ascending trend-line (support in red) but as soon as the support hold I view this move as a normal process with no significant trend change.














COMMODITIES

Brent
No change, the trend of the Brent is still bullish but I'm not sure that the consolidation pattern is over.Brent could continue to trade sideways in the coming days.
















Gold
Gold is now close to my target, which is the support around 540$.
However a break below the USD540 support zone could extend the correction much lower towards the low of the uptrend channel. (white line)
















GERMAN 10 YEAR YIELD
Bond yields have continued to advance since our last study in Europe and are now approaching the 3.70% target.
















EURO-DOLLAR

Nothing-new last week as the rate continues to trade sideways.
Short- term volatility remains low.
I still expected limited downside potential from here and think that the bottoming process is developing slowly.