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Treasuries: upside limited by 129-24 resistance – RBS
FXStreet (Barcelona) - Dmytro Bondar, Technical Analyst at RBS, maintains a short position on US 10-yr treasury futures, targeting 128-11.
Key Quotes
“The risks remain skewed to the downside, as the market formed an inside session on 6th April and has had a subsequent selloff, in line with our view. This coupled with bearish momentum readings pointed to increased bearish risks.”
“The recent price bounce does not alter the view, as the price remains below the 129-24+ resistance level. The slow stochastics oscillator also turned negative after displaying divergence with the price action.”
“Therefore, I favour keeping shorts to the first significant support area of 128-07, where an important Fibonacci level and 50-day MA both lie.”
“Strategy: short to 128-11 onto 127-19+ and possibly 126-18+. Stop 130-20”