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15 Apr 2015
Remain short on Treasuries – RBS
FXStreet (Barcelona) - Dmytro Bondar, Technical Analyst at RBS, remains short on US 10-yr treasuries, noting that technicals suggests the risk remains tilted to the downside, targeting 128-11.
Key Quotes
“The risks remain skewed to the downside, as the market formed an inside session on 6th April and has had a subsequent selloff, in line with our view. This coupled with bearish momentum readings points to increased bearish risks.”
“The price bounce yesterday does not alter the view, as the price remains below the 129-24+ resistance level. The slow stochastic oscillator also turned negative after displaying divergence with the price action.”
“Therefore, I favour keeping shorts to the first significant support area of 128- 07, where an important Fibonacci level and 50-day MA both lie.”
“Strategy: short to 128-11 onto 127-19+ and possibly 126-18+. Stop 130-20”
Key Quotes
“The risks remain skewed to the downside, as the market formed an inside session on 6th April and has had a subsequent selloff, in line with our view. This coupled with bearish momentum readings points to increased bearish risks.”
“The price bounce yesterday does not alter the view, as the price remains below the 129-24+ resistance level. The slow stochastic oscillator also turned negative after displaying divergence with the price action.”
“Therefore, I favour keeping shorts to the first significant support area of 128- 07, where an important Fibonacci level and 50-day MA both lie.”
“Strategy: short to 128-11 onto 127-19+ and possibly 126-18+. Stop 130-20”