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(Z3) Trips Bear Trigger

US 10YR FUTURE TECHS
  • RES 4: 110-10+ High Sep 8
  • RES 3: 109-20 High Sep 19
  • RES 2: 109-03 50-day EMA
  • RES 1: 107-24+/108-16 20-day EMA / High Oct 12
  • PRICE: 105-25+ @ 16:15 BST Oct 18
  • SUP 1: 105-24 Low Oct 18
  • SUP 2: 105-01+ 2.0% 10-dma envelope
  • SUP 3: 104-26 2.00 proj of the Jul 18 - Aug 4 - Aug 10 price swing
  • SUP 4: 104-17+ Low Jul’07

Treasuries traded lower again Wednesday, plumbing new pullback lows as the global rout on bonds continued. This pushes prices through the bear trigger, narrowing the gap with the 2.0% 10-dma envelope support of 105-01+. Key support at 106-03+ has given way, confirming a resumption of the downtrend and exposing the 105-00 handle and below. Key short-term trendline resistance has been defined at 108-16, the Oct 12 high, where a break is required to highlight a short-term reversal.

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

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