Technical Update - EU interest rate future resume bear trend. US T-Note soon to follow?
Kim Cramer Larsson
Technical Analyst, Saxo Bank
Summary: EU interest rate future resume bear trend. US 10 year T-Note break out of corrective triangle pattern likely to be imminent.
€171 was too strong a resistance for Euro Bund. Correction phase is over and with the break below €168.95 downtrend is resumed. Next support is at around €167.70
Identical pictures across US Interest rate futures forming corrective Symmetrical Triangle patterns
The US 10 year T-Note has been range bound between 127 and 129 in a more and more narrow range forming what could be a Symmetrical Triangle pattern which is a corrective and most of the time a continuation formation.
RSI is below 40 and no divergence strongly indicating the break out is likely to be down. If that scenario unfolds the future could drop to 125 26/32 - 126½. Support at 126 22/32
If the break out should occur to the upside we could se a mover to around 129½-1230. Resistance at 129.
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