US TNote: Technical points to acceleration of the contract’s decline - Natixis

Research Team at Natixis, suggests that the formation of a downward bubble in both the daily chart and weekly chart of US TNote and the break below the long-term support around 127.06-127.09 points to an acceleration of the contract’s decline.

Key Quotes

“Keep an eye on the support at 126.07 (Fibonacci projection), as a pullback below this level would open the way down towards the support at 125.24 (Fibonacci projection) before the one around 125.03-125.07 (lower band of monthly Bollinger). A break below these last levels would instil new downward momentum towards 123.26 (quarterly parabolic). Resistance levels are located at 127.09, at 128, at 129.14 and at 131.”

“A test of 126.07 is likely. A pullback below this level would open the way for a new decline towards 125.24 before 125.03-125.07.”