Break of 3.97% on cards for US 30Yr Treasury

A break above 3.97% appears to be on the cards for the 30Yr Treasury, according to Cyril Berkouk of Trading Central. The 30Yr is currently bouncing off a key support area at 3.53%, which matches both the rising 50-week moving average and the 38.2% Fibonacci retracement of the bullish run started in April 2013. Furthermore, the weekly RSI is reversing up from a strong support level and looks set for a bounce. With that said, the consolidation started in January 2014 should come to an end and a break above 3.97% seems to be on the cards. Therefore, this breakout would argue for a new up leg to the next key resistance area set around 4.67% (projection + horizontal resistance).

 

30 yr TYX