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‌‌(H2)‌‌ Through Bear Trigger

US 10YR FUTURE TECHS
  • RES 4: 129-31 Low Dec 8
  • RES 3: 129.14 High Jan 5
  • RES 2: 129-03 50-day EMA
  • RES 1: 128-08+/22+ 20-day EMA / High Jan 24
  • PRICE: 126-26+ @ 17:13 GMT Feb 4
  • SUP 1: 126-23+ Low Feb 04
  • SUP 2: 126-23 Low Jul 17, 2019 (cont)
  • SUP 3: 126-17+ 1.0% 10-dma Envelope
  • SUP 4: 126-10+ 61.8% retracement of the 2018 - 2020 bull cycle

Treasuries extended lower Friday, clearing the bear trigger and underpinning the bearish theme first flagged by the potential triangle formation or pennant that appeared on the daily chart. Key support at 127-02 - the Jan 19 low - has given way, confirming a resumption of the downtrend that now targets 126-23 and vol band support at 126-17+. Key resistance is unchanged at 128-27, Jan 13 high. Clearance of this hurdle would signal a short-term reversal.

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