19 Jun 2014
Treasuries: Oversold stochastics accounts for a bullish correction; sideway theme for now - RBS
FXStreet (Łódź) - According to the RBS Technical Analyst Dmytro Bondar, the market sees a period of
consolidation for US Treasuries, amid oversold stochastics and bouncing from the 123-25 support area.
Key quotes
"An immediate resistance stands at 124-20 with further one formed by Fibonacci retracements of 125-00/06."
"However, the upside is considered limited from here, as long-term charts suggest 3.5% yield level to be tested at some point in late 2014 – early 2015."
"The 10-yr daily yield chart shows yield having a reaction from 100-day MA and forming potential inverse H&S , which would be triggered should a break above 2.65% occur on a sustained basis. 2.57% and 2.53% are main resistance levels."
consolidation for US Treasuries, amid oversold stochastics and bouncing from the 123-25 support area.
Key quotes
"An immediate resistance stands at 124-20 with further one formed by Fibonacci retracements of 125-00/06."
"However, the upside is considered limited from here, as long-term charts suggest 3.5% yield level to be tested at some point in late 2014 – early 2015."
"The 10-yr daily yield chart shows yield having a reaction from 100-day MA and forming potential inverse H&S , which would be triggered should a break above 2.65% occur on a sustained basis. 2.57% and 2.53% are main resistance levels."