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(H3)‌‌ Clears Key Short-term Support

US 10YR FUTURE TECHS
  • RES 4: 116-00 High Feb 2
  • RES 3: 115-22+ High Feb 3
  • RES 2: 114-21+ 20-day EMA
  • RES 1: 114-11+ Intraday high
  • PRICE: 113-19+ @ 16:29 GMT Feb 6
  • SUP 1: 113-17+ Feb 6 Low & 61.8% retracement of the Dec 30 - Jan 19 bull run
  • SUP 2: 112-29 76.4% retracement of the Dec 30 - Jan 19 bull run
  • SUP 3: 112-18+ Low Jan 5
  • SUP 4: 112-09 Trendline support drawn from the Oct 21 low

A sharp pullback in Treasury futures Friday and a bearish start to this week’s activity, highlights a downward cycle and signals scope for continuation lower. The contract has breached 114-05+, the Jan 30 low and a short-term bear trigger. Note that price has also breached the 50-day EMA. This opens 113-17+ next - a level tested on Monday - a Fibonacci retracement. On the upside, initial firm resistance is seen at 114-21+, the 20-day EMA.

MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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