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‌‌(Z2)‌‌ Weakness Holds as Oversold Condition Unwound

US 10YR FUTURE TECHS
  • RES 4: 116-11 50.0% retracement of the Aug 2 - Sep 28 bear leg
  • RES 3: 115-26 50-day EMA
  • RES 2: 114-31+ 38.2% retracement of the Aug 2 - Sep 28 bear leg
  • RES 1: 113-30 High Oct 4
  • PRICE: 112-12+ @ 11:05 BST Oct 6
  • SUP 1: 111-20+/110-19 Low Sep 29 / Low Sep 28
  • SUP 2: 110-00 Psychological Support
  • SUP 3: 109 07 3.0% 10-dma envelope
  • SUP 4: 109-23+ Low Nov 30 20074 (cont)

Treasuries are holding the entirety of the Wednesday pullback, with corrective bounces short-lived and keeping the short-term condition bearish. The rally posted since the beginning of the week has allowed the oversold condition to unwind, and markets now re-target support at 111-20+, the Sep 29 low. Any recovery higher will need to again top the 20-day EMA ahead of 114-31+, a Fibonacci retracement.

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

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