Euribor – March 2010

Nicole Elliott from Mizuho Corporate Bank at 11/05/09

Comment: Slow work but Euribor contracts are trading higher, propelled by trendline and Ichimoku cloud support, the Lagging Span helped up by the 26-day moving average. Price action since September looks increasingly like ‘triangle’ consolidation and, being a continuation pattern, hints at a break to new contract highs this month – helped along by moving averages which have turned bullish. Central bankers will probably do anything to avoid the merest whiff of year-end pressures as seen in 2007 and to a lesser extent in 2008.

Strategy: Attempt small longs at 99.075/99.025; stop well below 99.000. Add to longs on a sustained break above 99.165 for 99.250/99.320 medium term.