US10Y Signs of a bearish reversal.


The US10Y has reached (and so far got rejected on) the 1.707 Resistance (1), which last time rejected the price on May 13. With the 1D RSI on a Bearish Divergence (is on Lower Highs while the actual price is on Higher Highs), similarities can be made with the February 25 – March 30 sequence, which after an RSI Bearish Divergence got rejected on the 1.775 Resistance (2) and essentially started the correction towards the 1.125 Support.

We are expecting a pull-back towards the 0.382 Fibonacci Retracement level and if broken the 0.618 level which may be even more likely as it is the top of the recent High Volatility Cluster.

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