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28 Jan 2015
US 10yr treasuries may remain above 1.78% - RBS
FXStreet (Barcelona) - Dmytro Bondar, Technical Analyst at RBS, expects that US 10yr treasury yields make struggle to break lower than 1.78% amid the formation of an inverted Head & Shoulders pattern.
Key Quotes
“The market reacted from the 1.78% yield level, which was formed by the 138.2% Fibonacci retracement from the 2010-2011 impulse wave.”
“As discussed earlier, 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 possible that the market has already formed a base in yield.”
“In any case, the 1.61% yield level should see a strong resistance, otherwise the pattern would be negated.”
“Overall, I believe the yield would struggle to break much lower than 1.78% amid the inverted H&S. A break below 1.61% cancels the view.”
Key Quotes
“The market reacted from the 1.78% yield level, which was formed by the 138.2% Fibonacci retracement from the 2010-2011 impulse wave.”
“As discussed earlier, 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 possible that the market has already formed a base in yield.”
“In any case, the 1.61% yield level should see a strong resistance, otherwise the pattern would be negated.”
“Overall, I believe the yield would struggle to break much lower than 1.78% amid the inverted H&S. A break below 1.61% cancels the view.”