Back
29 May 2013
Flash: 10-year US treasuries find support – RBS
FXstreet.com (Barcelona) - A major selloff of 10-year US Treasuries on increasing volume confirms a long-term bearish view.
However, “in the short-term, the market has reached a strong support level of 129-18+, where it would be likely to pause the selloff for the time being and potentially make the market to bounce back to the 130-15 / 131-00 region, formed by Fibonacci retracements from February-April impulse wave and filled-not- closed gap from late March.” writes Technical Strategist Dmytro Bondar at RBS.
In addition, “As the 10/3/3/3 slow stochastic started to show signs of a positive divergence (failure swing) in the oversold region. Overall, favor selling rallies to the gap region stopping through the 131-15 retracement targeting 128-05.” Bondar adds.
However, “in the short-term, the market has reached a strong support level of 129-18+, where it would be likely to pause the selloff for the time being and potentially make the market to bounce back to the 130-15 / 131-00 region, formed by Fibonacci retracements from February-April impulse wave and filled-not- closed gap from late March.” writes Technical Strategist Dmytro Bondar at RBS.
In addition, “As the 10/3/3/3 slow stochastic started to show signs of a positive divergence (failure swing) in the oversold region. Overall, favor selling rallies to the gap region stopping through the 131-15 retracement targeting 128-05.” Bondar adds.