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WTI Trade Idea by Capital Street FX

PostPosted: Thu Sep 08, 2016 5:54 pm
by CSFX.Support
[*]https://capitalstreetfx.com/en/wp-content/uploads/2016/06/oil-is-tumbling-1.jpg

Brent Rallies on Record U.S Crude Inventory Draw

Crude prices jumped more than 4 percent on Thursday after the U.S. Energy Information Administration announced a not-so-surprisingly large drawdown in the country’s oil stocks. The report was considered as a confirmation for data published by the API which indicated a decrease of 12.1 million barrels last week.

Thursday’s data showed U.S. crude stocks dropped by 14.5 million barrels in the week through September 02, to 511.6 million barrels, marking the biggest weekly drop in stockpiles since January 1999. This loss was driven by limited imports and shipping into the U.S. Gulf Coast owing to Tropical Storm Hermine last week.

Trade suggestion

Buy Stop at 50.00, Take profit at 50.25, Stop loss at 48.85

Daily Report on September 09, 2016 by Capital Street FX

PostPosted: Fri Sep 09, 2016 12:18 pm
by CSFX.Support
Image
Daily Report on September 09, 2016



The European Central Bank decided to leave interest rates unchanged on Thursday as expected but disappointed the markets with a lack of dovish statements on the Euro. With no immediate action to extend/expand the current asset purchase plan, and no explicit guidance about the central bank’s next moves, the markets were left hanging dry by the ECB. Speaking at the press conference after the rate decision, ECB President Mario Draghi stated that the bank was studying potential changes to its asset-buying program, but maintained the March 2017 end-date for the plan.

Crude prices pulled back on Friday as investors booked profits after prices rallied more than 4 percent a day earlier. U.S. Energy Information Administration confirmed a surprisingly huge draw-down in U.S. crude inventories, which had been reported first on Wednesday by the API. Government data showed that U.S. crude stocks dropped by 14.5 million barrels last week to 511.4 million barrels - the biggest weekly drop in stockpiles since January 1999.

This loss was driven by limited imports and shipping activity in the U.S. Gulf Coast owing to Tropical Storm Hermine last week. Higher oil prices powered the U.S dollar’s rally overnight, by raising U.S. inflation expectations, which led some investors to speculate that the Federal Reserve could hike interest rates sooner rather than later despite a recent spate of disappointing economic data.

Reports by China’s National Bureau of Statistics indicated that the country's consumer price inflation slowed to its weakest pace in almost a year in August. Food costs continued to abate despite unreliable agricultural production due to severe summer flooding. The consumer price index (CPI) growth posted the slowest pace of price inflation since October 2015. CPI growth was at 1.3 percent in August on a year-on-year basis, compared with a 1.8 percent increase in July. The producer price index (PPI) dropped 0.8 percent in August compared to a year earlier, virtually in line with expectations for a fall of 0.9 percent.



Technicals

EURGBP



Fig: EURGBP H4 Technical Chart

EURGBP has been on a sharp rise without a single bearish candle since it broke above the 50.0% retracement level at 1.09090. However, the aggressive and sharp up moves may have exhausted the bulls and slowed down the pace of the up-wave, which is showing up in the short bodies of the last two bullish candles (not including the current one). The pair may continue to surge higher, as the MA20 has converged with the MA50, and both are placed below the price action, thus powering the bullish momentum in EURGBP.

Trade suggestion

Buy Stop at 1.09600, Take profit at 1.09774, Stop loss at 1.09400



GBPAUD



Fig: GBPAUD H4 Technical Chart

GBPAUD crawled back from the low at 1.72600 but has been hesitant around the 1.74150 level as the pair is facing a stiff zone of resistance at the trendline marking the descending downtrend created since May 26. A pullback is expected as there is no support for further advances, with the two MAs placed above the price action. Furthermore, the %K line of the stochastics has entered the overbought zone, indicating the possibility of upcoming profit-taking.

Trade suggestion

Sell Stop at 1.72600, Take profit at 1.72600, Stop loss at 1.75070



AUDUSD



Fig: AUDUSD H4 Technical Chart

AUDUSD has entered a consolidation phase after nose-diving and moving past the 20-period moving average yesterday. The MA is now acting as a resistance and forcing the price to go down further after each attempt to gain back territory. The RSI has fallen from the overbought threshold to the neutral 50 level. AUDUSD is anticipated to retest the 23.6% retracement level at 0.76144.

Trade suggestion

Sell Stop at 0.76430, Take profit at 0.76144, Stop loss at 0.76730



GOLD



Fig: GOLD H1 Technical Chart

Gold has been trading with a sideways to upwards bias since yesterday following a steep decline which depressed the precious metal below both the two moving averages. The MA20 has penetrated the MA50 from above is casting downward pressure on current up moves. Both MA's are currently placed above the price action. While the RSI is in bearish territory, the %K line has reversed lower and crossed the %D line from above. The metal is expected to pull back lower after attempting a test of the MA20 just above the price action.

Trade suggestion

Sell Stop at 1335.90, Take profit at 1330.00, Stop loss at 1342.50



Natural gas



Fig: Natural gas H4 Technical Chart

Having surged sharply from the 23.6% retracement level, at 2.667, Natural gas’s up moves have slowed down. The two MAs placed below the price action are supporting further advances, but prices rising too far too fast have led the market into an overbought zone. The resistance from the upward sloping trendline through recent lows from early August to date is offering a strong road block to further gains currently. Natural gas is expected to reverse lower.

Trade suggestion

Sell Stop at 2.800, Take profit at 2.770, Stop loss at 2.825



SP500



Fig: SP500 H4 Technical Chart

SP500 has been restricted below the MA20 recently, even though the index is moving in an upward trending price channel, with higher highs and higher lows since early August. The price is nearing the lower boundary of the channel and is forecast to fall out of the range as bulls seem to be losing steam, with the RSI index pointing downwards and remaining below the 50 line. Prices have broken below both the MA's from above and bounce-backs have not been able to cross back above the MA's thus far.

Trade suggestion

Sell Stop at 2177.50, Take profit at 2172.40, Stop loss at 2182.83

EURUSD Market Outlook by Capital Street FX

PostPosted: Fri Sep 09, 2016 12:35 pm
by CSFX.Support
Image

EURUSD Longs In Play As ECB Powers Market Higher – Upside Limited

EURUSD rose in the early European trading session on Friday, heading for a higher weekly closing for the first time in the last three weeks. The burden of a widely expected extension to the Eurozone’s asset purchasing program was taken off the Euro, which seems to be outweighing any negative impact from today’s weaker-than-expected data on the single currency.

German Trade Balance Data for July that was reported earlier, came out with a lower than expected reading. According to the Federal Statistical Office, Destatis, Germany’s trade surplus for July fell to 19.4 billion euros ($21.9 billion) from a revised 21.4 billion euros in June, missing the forecasts for a surplus of 22.7 billion euros.

In seasonally-adjusted terms, exports slipped by 2.6% from one month earlier and 10% compared to a year ago, while imports dropped by 0.7%. Subsequently, Germany’s current account balance showed a surplus of only 18.6 billion euros in July, well below expectations for a reading of 22.9 billion euros. The large contraction in July 2016’s data compared to the same month last year was in part because of July 2015 being among the strongest months of the entire 2015 for German exporters.

Today, France’s National Institute of Statistics and Economic Studies (INSEE) reported that the country’s industrial production dropped unexpectedly in July. Industrial production in the EU’s second-largest economy fell by 0.6% in July, following a 0.7% decline in June. In particular, manufacturing of equipment skid by 3.3% on a month on month basis, in July, and production of transport materials lost by 1.4%.

The euro seemed resilient after the data releases, as at the moment, the shared currency is not under any threat of rate cuts or any other upcoming stimulus measures. The European Central Bank decided to leave interest rates unchanged on Thursday as expected but disappointed the markets with no explicit guidance about the central bank’s next moves.

Speaking at the press conference after the rate decision, ECB President Mario Draghi stated that the bank was studying potential changes to its asset-buying program, and maintained the March 2017 end-date for the ongoing program. However, he also reiterated the current risk to inflation and reassured markets that “If warranted, we will act by using all the instruments available within our mandate.”

Investors are shifting their focus now to the meeting of the U.S Federal Reserve later this month. Despite a chorus of Fed officials including President Janet Yellen and her top Deputy Stanley Fisher signalling that the time to hike rates is approaching as the economy is at or near the full-employment level, investors have trimmed bets that the Fed would be raising rates as early as this month, especially after recent data echoing the disappointment of a smaller-than-expected NFP last Friday.

EURUSD has been receiving huge support from both the 20-day and 50-day MA’s that were intercepted by the price action from below, earlier in the week. Both the MA’s are now placed below the price action and underpinning the current up-move. While the long-term moving average played an important role in supporting the market last week, the short term MA is currently acting as a handle that forces the euro to reverse higher, on every attempt to test it. The market has entered the bullish zone and set the stage for further advances. Nonetheless, the uptrend seems to be limited as a downward sloping trendline connecting the highs from earlier in the year, is currently weighing on the price action.

Trade suggestion

Buy Stop at 1.12740, Stop loss at 1.12278, take profit at 1.13100

AUD/USD signal by Capital Stree FX

PostPosted: Fri Sep 09, 2016 12:53 pm
by CSFX.Support
AUD/USD signal by Capital Stree FX

FromGMT 14:00 09/09/2016
TillGMT 21:00 09/09/2016

Buy at 0.75810
Take profit at 0.76140
Stop loss at 0.75610

P500 Trade Idea by Capital Street FX

PostPosted: Fri Sep 09, 2016 6:24 pm
by CSFX.Support
Image

U.S Stocks Nose-dive, Weighed By Fears of Rate Increase and Tumbling Crude Prices

Sp500 index has witnessed the biggest losing session on Friday since June 27 when the benchmark dropped more than 1%. Investors were rattled by hawkish comments by Federal Reserve officials that backed a U.S. interest rate hike while a slump in crude prices dragged down energy sector.

Boston Fed President Eric Rosengren, who is a voting member of the Fed’s policy committee and therefore will have a vote in the Fed’s decision, stated on Friday that “based on data that we have received to date…a reasonable case can be made for continuing to pursue a gradual normalization of monetary policy”.

None of 10 S&P500 sectors traded in the green. Two worst performers are utilities and telecoms that were both down around 3%. Energy shares, dropped 2.1 percent, due to more than 3% decline in crude prices.

Trade suggestion

Buy Limit at 2120.00, Take profit at 2125.30 , Stop loss at 2104.15

Fed Speak Causes Friday SellOff, BOE Under Spotlight In Comi

PostPosted: Mon Sep 12, 2016 12:30 pm
by CSFX.Support
Image

Fed Speak Causes Friday SellOff, BOE Under Spotlight In Coming Week

The past week, especially Friday, was good for the U.S dollar on the one hand, but on the other hand, turned out to be a nightmare for the equity and bond markets. While the greenback advanced against most of its peers, fueling the dollar index to a higher close, settling at 95.38, up 0.38% on the day. European and U.S stocks however, posted their biggest daily losses since the Brexit selloff.

The Dow Jones fell 2.1%, to 18085.45, S&P 500 declined 2.45% to 2127.81, and Nasdaq Composite lost 2.54% to close at 5215.91, after European shares finished the week lower. The U.K.’s FTSE 100 was down 1.19% over the week, while the French CAC index and the German DAX ended the Friday session around 1% lower.

Revived speculation over a U.S interest rate increase as soon as this month helped boost the dollar and created fears of a trend towards tightening monetary policy that would negatively impact investors holding shares in general and shares of dividend payers like utilities and telecommunications companies, as the opportunity cost of holding shares increases.

Among comments made by Fed officials on Friday, statements by Boston Fed President Eric Rosengren, heightened market volatility the most. Rosengren is a voting member of the Fed’s policy committee and therefore will have a say in the Fed’s decision.

Having advocated low rates in the recent past, and widely considered to be a dovish member, Rosengren stated that “based on data that we have received to date…a reasonable case can be made for continuing to pursue a gradual normalization of monetary policy”. The FOMC voter echoed hawkish statements by other Fed Members recently, by warning over the risks of waiting too long to tighten and confirmed that the economy is performing quite well with the labor market nearing full-employment and inflation slowly returning towards the 2% target.

Until the monetary policy meeting scheduled on September 20-21, there will be only one more speech by any Fed Member ahead of the blackout period for public comments by Fed Members. The central bank’s most dovish official, Governor Lael Brainard, will be delivering a previously unannounced speech on Monday at The Chicago Council on Global Affairs.

Last week, three central bank meetings were concluded with no new policy changes announced. Reserve Bank of Australia decided to stand pat on interest rates on Tuesday and Bank of Canada maintained its overnight rate at 0.5% as anticipated, but the European Central Bank disappointed markets even though it left the rates unchanged.

The ECB had been expected to extend its asset purchase program of buying €80 billion worth of bonds a month, beyond the March 2017 end-date, but ECB President Draghi stated that policy makers didn’t even discuss any fresh stimulus measures and gave no explicit guidance about the central bank’s next moves.

Eurozone data released in the past week was disappointing – with service-sector activity stagnating around a 19-month low, industrial production plunging and inflation being stuck near zero and showing no signs of coming close to the central bank’s target of 2%. In the coming week, the German ZEW Economic Sentiment survey, Eurozone trade balance and EU CPI(August Final) are on the calendar of data releases, but none of these releases are expected to be major market movers for the euro.

The British Pound will be in focus next week with a chain of data being released before the Bank of England’s monetary policy announcement. Most of the data released recently are considered to be broadly indicative of the outlook for the British economy, for a full month after the Brexit vote. The data readings, especially readings from the service sector that have pointed to an expansion, have mostly been above expectations, indicating the limited impact of Brexit on the country’s economy.

Data on inflation, employment and retail sales is due to be reported in the coming week. The U.K. Office for National Statistics will publish data on consumer price inflation for August on Tuesday, monthly jobs report on Wednesday, and data on retail sales on Thursday.

Chinese industrial production and retail sales data by the National Bureau of Statistics is scheduled to be released on Tuesday. Markets expect factory output to have risen by 6.1% last month, after increasing by 6.0% in July, while August’s retail sales are forecast to report a growth rate similar to the July rate of growth at 10.2%.

These numbers could impact the AUD and NZD, as China is their largest trading partner. Dairy prices continue to rise helping the Kiwi to outperform the Aussie and are creating pressure on the AUD/NZD cross, taking it to the lowest level since late April 2015.

In the week ahead, the main focus for the New Zealand dollar will be second-quarter GDP data, which is expected to report the strongest performance since the last quarter of 2013. A positive reading will push the NZD higher across the board, and pave the way for the AUD/NZD pair to retreat further.

The Swiss National Bank’s quarterly policy assessment is due on Thursday with most economists expecting the central bank’s benchmark interest rate to remain unchanged at -0.75%. According to Reuters, the SNB will stick to its commitment towards foreign currency interventions in order to reduce demand for the franc.

In the energy markets the focus remains on Oil. Oil prices tumbled on Friday but closed the week higher, fueled by Russia and Saudi Arabia’s commitment to work together to help rebalance the markets and a surprisingly large drawdown in U.S. crude stocks.

U.S. Energy Information Administration confirmed a huge draw-down in U.S. crude inventories on Thursday. The surprise development had been reported first on Wednesday by the API. Government data showed that U.S. crude stocks dropped by 14.5 million barrels last week to 511.4 million barrels – the biggest weekly drop in stockpiles since January 1999.

Crude prices may receive further support next week, as U.S oil producers could be hit by a delay in the North Dakota oil pipeline construction. Following ongoing protests from environmentalists and Native American tribes, the U.S. Justice Department asked operators of the Dakota Access pipeline to suspend construction along a 40-mile (64 km) stretch in North Dakota on Friday. With the suspension, local oil producers and shippers are facing the possibility of greater delays in setting up a quick route to ship oil to the Gulf of Mexico.

For the week ahead, oil traders will be focusing on U.S. oil supplies data on Tuesday by the American Petroleum Institute, data on stockpiles by the U.S. Energy Information Administration on Wednesday, and U.S. oil rig count by Baker Hughes on Friday for fresh supply-and-demand balance signals.

Daily Report on September 12, 2016 by Option Banque

PostPosted: Mon Sep 12, 2016 12:35 pm
by CSFX.Support
Image

Daily Report on September 12, 2016

The global equity selloff resumed in Asia after clouding European and U.S markets on Friday. Investor confidence in equities was shattered by slumping oil prices and concerns that the world’s biggest central banks are slowing down the pace of unleashing aggressive easing measures, while the U.S Federal Reserve may start increasing its benchmark rates as soon as next week.

MSCI's broadest index of Asia-Pacific shares outside Japan fell by 1.9 percent, followed by Shanghai with a fall of 1.5 percent, while Australian stocks sank 2 percent, marking the largest daily drop since the selloff in late June following the Brexit vote. Japan’s Nikkei 225 lost 1.5 percent as the yen gained ground, thanks to rising demand for safe-haven assets and surprise gains in Japanese core machinery orders.

According to Japan’s Cabinet Office data reported on Monday, the country’s core machinery orders increased unexpectedly by 4.9% in July (seasonally adjusted), contrasting with estimates calling for a decline of 2.8%. The gauge for mid-term capital spending rose for a second straight month after spiking 8.3% in June, easing some pessimism over negative effects of a stronger yen on business investment.

Oil prices extended losses after falling nearly 4% on Friday as a result of an increase in the number of rigs drilling for crude oil last week and an upcoming output ceiling instead of a freeze deal at current levels. U.S drillers increased the number of oil rigs for a 10th week out of the past 11 weeks to 414, the most since February, said Baker Hughes Inc. Meanwhile, OPEC and other producers are mulling over a voluntary a deal involving each country committing that its production quantities shall not surpass a certain ceiling.

These voluntary oil output caps are to accommodate the demand of Iran, Libya and Nigeria to raise their output. Even though this solution seems not to be as effective as an output freeze agreement, it still promises to prevent a collapse which had happened previously in Doha, due to Iran’s bid to regain its pre-sanctions market share while Nigeria and Libya are looking to increase production after political turmoil restricted output.

The market focus on this quiet Monday is on the speech by the most dovish Fed Governor Lael Brainard. She will make the last scheduled appearance by a U.S. central banker before the traditional pre-meeting quiet period until Fed officials gather in Washington on September 21.



Technicals

AUDUSD

Fig: AUDUSD H4 Technical Chart

AUDUSD has fallen back into the descending trading channel following a decisive slide last week. The pair also attempted to surpass the 38.2% level but exhausted bears could not retain the momentum and had to let go of the milestone and the pair has pulled back. Nonetheless, the Aussie is expected to breach this support as the MA20 has crossed through the MA50 from above. The crossover has signaled further retreat in the AUDUSD. The upside is limited as the prices are contained in the channel.

Trade suggestion

Sell Stop at 0.75250, take profit at 0.74880, stop loss at 0.75550



USDCAD

Fig: USDCAD H4 Technical Chart

USDCAD has broken out of the triangle formation, trading higher for the fourth trading day in a row. Bulls have pushed the market into an overextended state as RSI index is lingering around the 70 threshold. Profit taking has depressed the price from the highs around key level 1.30800 but the two MAs have converged below the price action, supporting further advances.

Trade suggestion

Buy Stop at 1.30800, take profit at 1.31460, stop loss at 1.30187

EURCHF

Fig: EURCHF H4 Technical Chart

EURCHF is once again heading for the 61.8% Fibonacci retracement at 1.09774 and attempting to break above this level. Looking back at the previous failed attempts in the past, we can see that every time the pair tried to make a breakout, the market had already entered the overbought zone. As a result, the bulls failed to maintain their momentum, and had to let the bears step in. This time, the pair is on the rise after a correction with %K line penetrating the %D line from below and pointing up from the current level at around 50. With support from the two MAs placed below the price action, EURCHF is likely to retest the high at 1.09995 created on September 01.

Trade suggestion

Buy Stop at 1.09775, take profit at 1.09995, stop loss at 1.09585


GOLD

Fig: GOLD H4 Technical Chart

Gold slid back below the 1330.00 threshold as a result of a steep drop from more than three-week highs at around 1352.50 which were reached last week. The yellow metal had reached the overbought zone as a result of this sharp spike. As can be seen from the stochastic chart, the %K line has crossed over the %D line and gold is experiencing some corrective moves. Coupled with the fact that 1330.00 is a firm zone of resistance, and that the market remains in bearish territory, the current up moves are not expected to last long.

Trade suggestion

Sell Limit at 1330.00, take profit at 1324.55, stop loss at 1333.10



BRENT

Fig: BRENT H4 Technical Chart

Brent opened the new week with a gap down and continued to head downwards to the 23.6% retracement level at 46.47. The crude price has crossed over the 50-period moving average from above, which has consolidated the downtrend. The RSI index that has only fallen to 38.28 thus far, suggests that there is further room for a retreat.

Trade suggestion

Sell Stop at 47.20, take profit at 46.47, stop loss at 47.83



FTSE

Fig: FSTE H4 Technical Chart

Having declined more than 1% on Friday, the FTSE is on the verge of falling into a downward slopping trading channel. Sellers have reigned through the trading session on Friday, and ramped up the selloff so hastily that it didn’t give the index any chance of a bounce-back or consolidation. The market has fallen into the oversold zone but the wide gap between the %K line and the %D lines indicate little chances of a bounce-back. The index looks set to dip lower today.

Trade suggestion

Sell Stop at 6732.00, take profit at 6660.00, stop loss at 6767.60

AUD/JPY signal by Capital Street FX

PostPosted: Mon Sep 12, 2016 12:37 pm
by CSFX.Support
AUD/JPY signal by Capital Street FX

From GMT 11:15 12/09/2016

Till GMT 21:00 12/09/2016

Sell at 76.500

Take profit at 76.100

Stop loss at 76.800

Re: Daily Market Research by Capital Street FX

PostPosted: Mon Sep 12, 2016 8:02 pm
by CSFX.Support
U.S Stocks Get A Boost As The Case for September Rate Hike Eases

U.S. stocks rose on Monday morning after Atlanta Fed Bank President Dennis Lockhart and his Minneapolis counterpart Neel Kashkari, on separate speeches, stated that there was no “urgency” to take action given the state of the economy.

Adding to the buying pressure was the remarks by Fed Governor Lael Brainard to the Chicago Council on Global Affairs. Ms. Brainard kept her stance as a dovish Fed member by arguing that potential weakness in the labor market and risks of foreign economic downturns cause the U.S economy not to be ready for leaving the its monetary stimulus too quickly.

S&P500 index was up 0.7%, led by 1.21% increase in Telecommunication Services and 1.03% advance in Comsumer Staples.

Trade suggestion

Buy Stop at 2141.00, Take profit at 2150.30 , Stop loss at 2136.00

Re: Daily Market Research by Capital Street FX

PostPosted: Mon Sep 12, 2016 8:10 pm
by CSFX.Support
U.S Treasury Notes Tick Lower As Markets Brace for Higher U.S Rates

U.S. government bonds fell further on Monday, sending yields to their highest levels since late June amid concerns that major central banks in Europe and Japan are reaching the limits of policy easing measures, and mounting speculation over this month’s rate hike by the U.S Federal Reserve.

The bond market resumed its selloff on Thursday after the policy meeting of the European Central Bank when it disappointed investors by not extending the asset purchase program in which it is buying €80 billion worth of bonds a month, beyond the March 2017 end-date. Lower demand dampened bond prices and drove yields higher in return.

Consequently, Treasuries no longer appear as attractive to foreign investors compared to local currency bonds as they did earlier this year, as the spike in other government bond yields has wiped out the “yield pick-up”. This is the amount foreign investors expect to earn when they sell local government bonds in their respective countries to invest the proceeds into buying 10-year U.S. Treasuries.

Topping up the selling pressure were hawkish comments from the Federal Reserve Bank of Boston President Eric Rosengren, a Fed Member widely considered to be a dove. In a speech delivered on Friday, Rosengren discussed the risks of waiting too long to raise interest rates as the labor market has been near or at full employment, while inflation is slowly returning towards the central bank’s 2% target.

Another Fed governor who has maintained a dovish stance on monetary policy will be speaking later on Monday. Lael Brainard has generally been advocating maintaining low rates in the current economic climate, and will round up the appearances by U.S. central bankers until they gather for the FOMC meeting on September 21 in Washington.

Therefore, if a different argument, or hints of a change in opinion are delivered tonight, the possibility of a rate hike this month will shoot up, and in turn, pave the way for a further rise in bond yields. The Treasury Department is scheduled to auction the benchmark 10-year notes before Ms. Brainard’s speech. The uptake from the auction combined with the effects of the speech could magnify the volatility in the 10-year notes.

Fig: US 10-year treasuries

The 10 year T-notes have been on a slide since early June. The price once again fell below the 38.2% retracement level after a spike last week. With the downward pressure which being cast by the two moving averages placed above the price action, U.S 10-year treasury prices are anticipated to continue the downtrend and may retest the 50% fibonacci retracement level.

Trade suggestion

Sell Stop at 130.20, Take profit 129.90, Stop loss at 130.50