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(U1)‌‌ Sharp Bounce, But Technical Condition Unchanged

US 10YR FUTURE TECHS
  • RES 4: 133-00 Round number resistance
  • RES 3: 132-28+ 1.00 proj of Apr 29 - May 7 - May 13 price swing
  • RES 2: 132-20+ High May 7 and key short-term resistance
  • RES 1: 132-05+ High May 26
  • PRICE: 132-03+ @ 15:18 BST Jun 4
  • SUP 1: 1312-16 Low May 21
  • SUP 2: 131-01/130-31+ Low May 19 / Low May 13
  • SUP 3: 130-23+/17+ Low Apr 29 and key support / Low Apr 13
  • SUP 4: 129-31 Low Apr 6

US 10y futures bounced sharply into the Friday close in response to the poorer-than-expected NFP. Despite the bounce, markets failed to crack through near-term resistance, which remains intact at 132-05+. This keeps the technical condition unchanged though and attention remains on support at 130-31+, May 13 low and a key S/T chart point. A break would expose 130-23+, Apr 29 low. The broader trend is bearish and a move below 130-23+ would signal a resumption of the primary downtrend, paving the way for 129-25, Mar 30 low. Resistance to watch is 132-20+, May 7 high. A break would be bullish.

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