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(Z9) Retreats from cycle high...>

US 5YR FUTURE TECHS
US 5YR FUTURE TECHS: (Z9) Retreats from cycle high
*RES 3: 121-21+ High Nov 9 2016
*RES 2: 120-277 1.0% 10-dma envelope
*RES 1: 120-13 Sep 4 High
*PRICE: 120-027 @ 10:58 BST, Sep 5
*SUP 1: 118-21+ Low Aug 13
*SUP 2: 118-122 Pivot level
*SUP 3: 118-17/117-08 50-dma/Post Fed Low
Having inched higher to touch new cycle highs at 120-13 yesterday, prices have
retreated somewhat US-China trade deal positivity, leaving the near-term outlook
neutral. Nonetheless, fresh highs can't be discounted in the coming sessions,
particularly with a stacked data calendar (ADP employment change, ISM
non-manufacturing, Nonfarm Payrolls). Furthermore, congestion resistance layered
between 120-062-097 has now been fully erased, giving bulls a clear run on
121-00. For bears to wrest control, a decline through 120-00 would weaken the
outlook after which focus turns to 119-262/302 as Fib support.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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