29 Jan 2015
US 10-yr yields might stay in the 1.61% - 1.78% range – RBS
FXStreet (Barcelona) - Dmytro Bondar, Technical Analyst at RBS, expects that the US 10-Yr treasury yields might consolidate in the 1.61% - 1.78% range for now with subsequent base formation looming.
Key Quotes
“The market looks likely to stay in a range 1.61% - 1.78%, which was formed by Fibonacci retracements 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 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 1.61% - 1.78% 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 Fibonacci retracements 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 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 1.61% - 1.78% amid the inverted H&S. A break below 1.61% cancels the view.”