Well, 10Y notes still keeps it’s trading range since the beginning of November. It seems that
buyers and sellers struggle in this area and as long as it goes I prefer to stay aside.
U.S. Dollar Index went back to 79.8$ selling zone after down reaction. Last time I suggested that it could be good to have a reaction with a sign that buyers still keep situation under control. Well, last November trading session showed that supply overcome demand, but next 6 days price was kept above 1/2 last up wave that a good sign that at that level price got support from buyers. As we can see it now demand absorbed supply and initiated rally to the area where last down reaction started. I expect asset to touch 80.45 or even 81.45 levels, however it possible for price to make another 79$ level’s touch. In case if asset going to change its mode I have another scenario in my mind which I would call “red flag”. “Red flag” scenario means in this situation downward move which can bring price under last support level at 78$ or even lower. I don’t think that it’s a good idea to open position right now. For long it’s too late and for short it’s too early.
