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(Z2)‌‌ Corrective Bounce Extends

US 10YR FUTURE TECHS
  • RES 4: 113-18 50-day EMA
  • RES 3: 112-22+ High Oct 6
  • RES 2: 111-28+ High Oct 13 and key near-term resistance
  • RES 1: 111-11 20-day EMA
  • PRICE: 110-30 @ 15:25 BST Oct 26
  • SUP 1: 108-26+ Low Oct 21 and the bear trigger
  • SUP 2: 108-06+ Low Oct 2007 (cont)
  • SUP 3: 107.05 3.0% 10-dma envelope
  • SUP 4: 106-20+ Low Aug 2007 (cont)

Treasuries have extended the rally further off the Friday low. Despite the bounce, the primary trend remains lower following the move lower last week. Weakness to 108-26+ confirmed a break of support at 110.02, Oct 13 low and the psychological 110.00 handle. This resumes the price sequence of lower lows and lower highs. The focus is on 108-20, a Fibonacci projection. Initial firm resistance has been defined at 111-28+, the Oct 13 high.

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

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