May 29, 2024 19:31 GMT
US 10YR FUTURE TECHS: (M4) Retracement Mode
US 10YR FUTURE TECHS
- RES 4: 110-16 50.0% retracement of the Feb 1 - Apr 25 bear leg
- RES 3: 109-31+ High May 16 and bull trigger
- RES 2: 109-04+ 50-day EMA
- RES 1: 108-26+ 20-day EMA
- PRICE: 107-25 @ 20:11 BST May 29
- SUP 1: 107-25+ 76.4% retracement of the Apr 25 - May 16 rally
- SUP 2: 107-21+ Low May 29
- SUP 3: 107-12+ Low Apr 30 and May 1
- SUP 4: 107-04 Low Apr 25 and the bear trigger
Treasuries traded heavy after the poorly received 7y note auction, extending the pullback from 109-31+, the May 16 high and a key short-term resistance. Note that support at 108-15, the May 14 low, has been cleared. The break undermines the recent bullish theme and instead signals scope for a deeper retracement. This has opened 108-00 ahead of 107-25+, a Fibonacci retracement pierced on Wednesday. On the upside, initial firm resistance is seen at 109-04+, the 50-day EMA.
152 words