More upside likely for US 10-year T-note and bunds

Kim Cramer Larsson

Technical Analyst, Saxo Bank

The US 10-year T-Note broke bullishly out of its falling wedge formation, hitting $120 resistance earlier today. Currently it looks like it will close above here and if it does there's no resistance before the 121 – 121 12/32 area.

RSI has broken above 60 threshold and a close above this indicates bullish sentiment for the T-Note
If it drops back below as of close today it could drop all the way down to support at 119.

Medium-term (weekly chart) 

A massive bullish engulfing pattern last week, a broken falling trend line and  RSI divergence indicate higher levels, possibly around 121.  

Daily 

We've broken out of the triangle and now also the 200-day moving average. RSI is bullish and there seems to be room up to around the 163-164 area. 

 

 

Weekly

Euro bund with long-term falling trend line.

Source for all charts: Saxo Bank

Disclaimer

Saxo Capital Markets (Australia) Pty Ltd prepares and distributes information/research produced within the Saxo Bank Group for informational purposes only. In addition to the disclaimer below, if any general advice is provided, such advice does not take into account your individual objectives, financial situation or needs. You should consider the appropriateness of trading any financial instrument as trading can result in losses that exceed you initial investment.

Please refer to our Analysis Disclaimer, and our Combined Financial Services Guide and Product Disclosure Statement. All legal documentation and disclaimers can be found at https://www.home.saxo/en-au/legal/.