30 Mar 2015
Treasuries: risks remain to the downside – RBS
FXStreet (Barcelona) - Dmytro Bondar, Technical Analyst at RBS, suggests remaining short on treasuries from 128-29+ for 127-31 onto 127-00.
Key Quotes
“Risks remain skewed to the downside after the break above the trendline on the yield chart and the formation of a bearish outside session on the futures price chart, which, contrary to Bunds charts, indicated downside risks for the market.”
“The price confirmed the bearish outside session reversal by a breakaway gap at 128-26, which now turns into resistance.”
“My bias is that there may be another push higher towards 129-00, but ultimately decline to 127-19+ onto 126-18+ and 126-00."
“A sustained break above 129-09 would require the view re-assessed, while a break above 129-29 cancels the view+.”
Key Quotes
“Risks remain skewed to the downside after the break above the trendline on the yield chart and the formation of a bearish outside session on the futures price chart, which, contrary to Bunds charts, indicated downside risks for the market.”
“The price confirmed the bearish outside session reversal by a breakaway gap at 128-26, which now turns into resistance.”
“My bias is that there may be another push higher towards 129-00, but ultimately decline to 127-19+ onto 126-18+ and 126-00."
“A sustained break above 129-09 would require the view re-assessed, while a break above 129-29 cancels the view+.”