US10Y Close to a major bearish move towards July's lows

19 Kas 2021

I haven't updated my 10Y Bond Yield outlook in almost a month, ever since calling the top and the potential of a bearish reversal:

The top successfully took place and the rejection gave way to the reversal on which the price has been trading until now. The similarities with the March - May formation remain and have even become stronger. As you see there is a Triangle pattern on both which in June it broke aggressively to the down side turning the 1D MA50 (blue trend-line) into its Resistance until late August.

Right now the 1D MA50 is supporting. If the price breaks below it and gets rejected there (turning it into a Resistance) on the first test, then I expect the US10Y to targe the 1.125 Support. Until then, we are trading sideways within the Triangle.


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