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2 Aug 2013
Flash: Treasury H&S theme intact – RBS
FXstreet.com (New York) - Technical Strategist Dmytro Bondar at RBS analyses the short-term trend of Treasuries.
Key quotes
“The price had a dip below our risk level, but recovered above the 126-11 retracement on the close. Overall, this leaves the inverse H&S pattern on the chart suggesting the targets of 128-09 and 129-07 will be reached.”
“Other resistance levels include 127-18 and 128- 03+ (Fibonacci retracements from the Mar - May advance on a continuation chart with rollover adjustments). Favour being long to 128-09 and 129- 07 on a caveat of a sustained break below 126-03. The stop has been slightly adjusted to account for the possibility of a dip to 126-04/03+.”
Key quotes
“The price had a dip below our risk level, but recovered above the 126-11 retracement on the close. Overall, this leaves the inverse H&S pattern on the chart suggesting the targets of 128-09 and 129-07 will be reached.”
“Other resistance levels include 127-18 and 128- 03+ (Fibonacci retracements from the Mar - May advance on a continuation chart with rollover adjustments). Favour being long to 128-09 and 129- 07 on a caveat of a sustained break below 126-03. The stop has been slightly adjusted to account for the possibility of a dip to 126-04/03+.”