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(U3) Short-Term Bull Cycle Still In Play

US 10YR FUTURE TECHS
  • RES 4: 115-19 High May 18
  • RES 3: 115-10 1.0% 10-dma Envelope
  • RES 2: 115-06 50-day EMA
  • RES 1: 115-00 High Jun 1
  • PRICE: 114-02+ @ 16:36 BST Jun 2
  • SUP 1: 114-00 Low May 31
  • 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 faltered Friday on the better-than-expected NFP release. Nonetheless, the week’s lows remain in tact, keeping the short-term bull cycle in play. The short-term reversal was confirmed on Tuesday - the price pattern that day was a bullish engulfing candle and subsequent gains reinforce the pattern, suggesting scope for an extension to the 50-day EMA at 115-06. Clearance of the EMA would highlight a stronger reversal. On the downside, key support and the bear trigger is 112-29+, the May 26 / 30 low.

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