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(U1)‌‌ Recovering Off Last Week’s Low

US 10YR FUTURE TECHS
  • RES 4: 135-23 High Feb 24
  • RES 3: 135-22 2.618 proj of Jun 17 - 21 - 25 price swing
  • RES 2: 135-19+ 50% Aug'20 - May'21 Sell-Off
  • RES 1: 134-18/35-14 High Aug 16 / High Aug 04
  • PRICE: 134-15 @ 15:57 BST Aug 16
  • SUP 1: 133-09+ Low Aug 11
  • SUP 2: 133-05 Trendline support drawn off the May 30 low
  • SUP 3: 132-30 Low Jul 14 and high Jun 21
  • SUP 4: 132-06 Low Jun 30 and Jul 1

Treasury futures remain comfortably above last week's low. The print last week below the 50-day EMA, at 133-18 Monday, does highlight a bearish risk. However, the fact that the contract did recover from just below the average also signals a bullish development. 133-09+, Aug 11 low marks an important S/T support that if breached would expose trendline support at 133-05. For bulls, stronger gains are required to refocus attention on the bull trigger at 135-14.

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