‌‌(Z2)‌‌ Bounce Off Lows

• RES 4: 112-22+ High Oct 6
• RES 3: 111-30 20-day EMA
• RES 2: 111-28+ High Oct 12 and key near-term resistance
• RES 1: 110-02 Low Oct 13 and a recent breakout level
• PRICE: 109-22 @ 15:20 BST Oct 21
• SUP 1: 108-26+ Low Oct 21
• SUP 2: 108-06+ Low Oct 2007 (cont)
• SUP 3: 107.14+ 3.0% 10-dma envelope
• SUP 4: 106-20+ Low Aug 2007 (cont)

Treasuries remained offered early Friday, putting prices at a new low of 108-26+. Markets bounced somewhat through the London close, but did little to change the over-arching bearish trend. The extension lower this week has confirmed a break of support 110.02, the Oct 13 low and the psychological 110.00 handle. This marks a resumption of the primary downtrend and an extension of the bearish price sequence of lower lows and lower highs. Sights are set on a move lower towards 108-20, a Fibonacci projection. Initial firm resistance has been defined at 111-28+, high Oct 13.