2 Feb 2015
US 10yr treasuries likely to consolidate – RBS
FXStreet (Barcelona) - Dmytro Bondar, Technical Analyst at RBS, gives the technical outlook for US 10yr treasuries, expecting it to consolidate in the 1.61% - 1.78% range for now with subsequent base formation possibility.
Key Quotes
“The market looks likely to stay in a range 1.61% - 1.78%, which was formed by 138.2% Fibonacci retracements from the 2010-2011 impulse wave.”
“The area of 1.61% - 1.78% technically marks the sell region of an inverted Head and Shoulders pattern formed on the yield chart during 2011- 2013. Therefore, it is deemed to attract long-term sellers and hence may see a base in yield terms.”
“The 1.61% yield level is expected to be a strong resistance.”
“Overall, I believe the yield would be likely to form a base within the 1.61% - 1.78% range amid the inverted H&S.”
“A break below 1.61% cancels the view.”
Key Quotes
“The market looks likely to stay in a range 1.61% - 1.78%, which was formed by 138.2% Fibonacci retracements from the 2010-2011 impulse wave.”
“The area of 1.61% - 1.78% technically marks the sell region of an inverted Head and Shoulders pattern formed on the yield chart during 2011- 2013. Therefore, it is deemed to attract long-term sellers and hence may see a base in yield terms.”
“The 1.61% yield level is expected to be a strong resistance.”
“Overall, I believe the yield would be likely to form a base within the 1.61% - 1.78% range amid the inverted H&S.”
“A break below 1.61% cancels the view.”