📝UST 10yr Break Above Resistance to Trigger A Minor Buy Signal: ING Strategy

• The overall picture in the hourly chart is improving after a very weak period. On Tuesday, prices finally broke above the upper end of the broad falling trend channel around the 110 57/64 level, suggesting a trend change and a violation of the short-term downtrend. Therefore, we upgrade the short-term rating to ‘Neutral’ from ‘Down’.

• Prices reached a high at 111 9/64 today, followed by a decline. This weakness should be considered as a pull-back towards the former upper end of the falling trend channel and rising MA-34 line, both around 110 50/64, in the making of a higher low. This should be the first step in the development of a short-term rising trend, confirmed by a break above the recent high at 111 9/64. An hourly close above the declining EMA-200 line at 111 17/64 will confirm the bottoming scenario here, indicating the building of a larger bottom formation below the horizontal resistance around 111 29/64.

• A break above this horizontal resistance after a possible brief pause will complete a bottom formation, triggering a minor Buy signal. Only a close below the 110 22/64 level would be weak and suggests a continuation of the downtrend. - ING Rates Strategy