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(U3) Bearish Outlook

US 10YR FUTURE TECHS
  • RES 4: 115-19 High May 18
  • RES 3: 115-04+ 1.0% 10-dma Envelope
  • RES 2: 115-01 50-day EMA
  • RES 1: 114-19 / 115-00 20-day EMA / High Jun 1
  • PRICE: 113-27+ @ 11:31 BST Jun 7
  • SUP 1: 113-10 Low Jun 05
  • SUP 2: 112-29+ Low May 26 / 30 and key support
  • SUP 3: 112-16 76.4% retracement of the Mar 2 - May 4 rally
  • SUP 4: 111-20+ Low Mar 10

Treasury futures continue to trade below last week’s 115-00 high, on Jun 1. Price action that day is a bearish engulfing candle, signalling the end of the recent recovery and suggesting potential for a continuation lower. Attention is on key support and the bear trigger at 112-29+, the May 26 / 30 low. Clearance of this level would resume the downtrend that started May 4. A break of 115-00 is required to reinstate a bullish theme.

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