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(U3) Bounces Sold Pre-Fed Decision

US 10YR FUTURE TECHS
  • RES 4: 115-29+ High May 17
  • RES 3: 115-19 High May 18
  • RES 2: 115-00 High Jun 1 and a key resistance
  • RES 1: 114-06+ / 114-25+ High Jun 6 / 50-day EMA
  • PRICE: 113-03 @ 16:29 BST Jun 13
  • SUP 1: 112-29+ Low May 26 / 30 and key support
  • SUP 2: 112-16 76.4% retracement of the Mar 2 - May 4 rally
  • SUP 3: 112-00 Low Mar 10
  • SUP 4: 111-14+ Low Mar 9

Treasury futures trade close to the week’s lowest levels having erased a post-CPI rally. This keeps markets consolidating ahead of the Fed decision on Wednesday, with attention on support at 112-29+, the May 26 / 30 low. The outlook is bearish following the reversal engulfing candle pattern on June 2 and the subsequent move lower. Clearance of 112-29+ would resume the trend that started May 4 and open 112-16+, a Fibonacci retracement. Initial firm resistance is at 114-06+, the Jun 6 high.

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