(U3) Correction Lower

• RES 4: 114-06+ High Jun 6
• RES 3: 114-00 High Jun 13
• RES 2: 113-08 High Jul 18 and the short-term bull trigger
• RES 1: 112-17+/113-01+ High Jul 24 / 50-day EMA
• PRICE: 111-14+ @ 16:42 BST Jul 27
• SUP 1: 111-09 Low Jul 25
• SUP 2: 111-04+ 1.0% 10-dma envelope
• SUP 3: 110-28 76.4% retracement of the Jul 7 - 18 rally
• SUP 4: 110-05 Low Jul 6 and the bear trigger

The recent pullback in Treasuries appears to be a correction, rather than a full reversal. However, price has pierced 111-22+ as well as 111-11, the 50.0% and 61.8% retracement levels for the Jul 7 - 18 rally. This highlights scope for a deeper retracement and opens envelope support at 111-04+ for direction. For bulls, a reversal higher and a clearance of last week’s 113-08 high (Jul 18), would resume the recent bull cycle and this would expose 114-00, the Jun 13 high.