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‌‌(M2)‌‌ Contract Lows

US 10YR FUTURE TECHS
  • RES 4: 125-17 50-day EMA
  • RES 3: 124-28+ High Mar 17
  • RES 2: 123-19+ 20-day EMA
  • RES 1: 123-04/12 High Mar 31 / High Mar 23
  • PRICE: 120-31 @ 16:28 BST Apr 5
  • SUP 1: 120-26+ Low Mar 28 and the bear trigger
  • SUP 2: 120-12 2.0% Lower Bollinger Band
  • SUP 3: 120-04+ Low Dec 12/13 2018 (cont)
  • SUP 4: 120.00 Low Dec 6 2018 (cont) and psychological support

Treasuries traded to a fresh contract low Tuesday, extending the pullback off last week’s high. The bearish theme dominates and recent short-term gains appear to be a correction. Initial resistance at 123-12, Mar 23 high, remains in place and this lies ahead of the 20-day EMA, at 123-19+. Attention is on the 2.0% lower Bollinger Band for support, which undercuts at 120-12. A break would confirm a continuation of the downtrend and open the 120-00 handle.

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