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(U3) Pullback Appears To Be A Correction

US 10YR FUTURE TECHS
  • 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: 113-06 50-day EMA and a key resistance point
  • PRICE: 112-08+ @ 15:50 BST Jul 24
  • SUP 1: 112-00 Low Jul 20
  • SUP 2: 111-22+ 50.0% retracement of the Jul 7 - 18 rally
  • SUP 3: 111-11 61.8% retracement of the Jul 7 - 18 rally
  • SUP 4: 110-05 Low Jul 6 and the bear trigger

Treasuries turned lower last Thursday. The pullback for now, appears to be a correction, rather than a full reversal. Initial support lies at 112-00, the Jul 20 low. A break of this level would signal scope for a deeper retracement and open 111-22+ initially, a Fibonacci retracement point. For bulls, clearance of last week’s 113-08 high (Jul 18), would resume the recent bull cycle and expose 114-00, the Jun 13 high.

MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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