18 Jul 2013
Flash: Inverse H&S pattern in place for US treasuries – RBS
FXstreet.com (New York) - Technical Strategist Dmytro Bondar at RBS postulates the short-term movements of US treasuries.
H&S pattern in focus
According to Bondar, “An inverse head and shoulders theme is in place with measuring targets of 128-09 and 129-07. The slow stochastic with standard parameters has also turned bullish in the short term, as indicated by a positive crossover in the oversold region.”
Moreover, “The risk level would be a break below the right shoulder, meaning a sustained break below 126-00. On the weekly yield chart, there is also a dark cloud cover pattern pointing to 2.10% yield level to be re-tested. Bigger picture is bearish amid large inverse H&S unfolding on the yield chart (2.80% is a target).”
H&S pattern in focus
According to Bondar, “An inverse head and shoulders theme is in place with measuring targets of 128-09 and 129-07. The slow stochastic with standard parameters has also turned bullish in the short term, as indicated by a positive crossover in the oversold region.”
Moreover, “The risk level would be a break below the right shoulder, meaning a sustained break below 126-00. On the weekly yield chart, there is also a dark cloud cover pattern pointing to 2.10% yield level to be re-tested. Bigger picture is bearish amid large inverse H&S unfolding on the yield chart (2.80% is a target).”