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Treasuries: bearish momentum still the key drivers – RBS

FXStreet (Barcelona) - Dmytro Bondar, Technical Analyst at RBS, suggest remaining short on treasuries to 128-11 onto 127-19.

Key Quotes

“The market saw an inside session which, coupled with bearish momentum readings, points to increased bearish risks, especially if the 129-05+ support is broken.”

“The slow stochastic oscillator remains overbought and displays signs of negative divergence. Therefore, I favour being short with the first significant support area of 128-04+/11 being the main target.”

“A break below 129- 05+ should trigger the move and confirm the view; whereas a break above 129-24+ would require a view re-assessment. “

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