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(U2)‌‌ Bearish Outlook

US 10YR FUTURE TECHS
  • RES 4: 121-27+ High Apr 5
  • RES 3: 120-27+ High Apr 7
  • RES 2: 120-02+/19+ 50-day EMA / High May 26 and bull trigger
  • RES 1: 119-16+ High Jun 1
  • PRICE: 118-05 @ 11:36 BST Jun 8
  • SUP 1: 117-22+ Low Jun 7
  • SUP 2: 117-18 Low May 11 07
  • SUP 3: 116-21 Low May 9 and a bear trigger
  • SUP 4: 116-00 Round number support

The near-term outlook in Treasuries remains bearish following recent weakness. Futures continue to trade below the 50-day EMA - at 120-02+. The EMA represents a key resistance and a clear break is required to allow for a stronger recovery towards 122-00. The recent move away from the average however suggests the correction since May 9, is over. An extension lower would open key support and a bear trigger at 116-21, May 9 low.

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