Treasuries: bearish momentum readings indicate a trend reversal – RBS

FXStreet (Barcelona) - Dmytro Bondar, Technical Analyst at RBS, maintains a short position on Treasuries targeting 128-11, as the bearish momentum readings point towards a probable trend reversal.

Key Quotes

“The price went through my risk level of 129-29 during Easter, but formed an inside session, which, coupled with bearish momentum readings, points to a likely bearish trend reversal.”

“The slow stochastic oscillator remains overbought and displays signs of negative divergence. Therefore, I favour re-entering shorts outright with the first significant support area of 128-04+/11 being the main target.”