10-Yr U.S. Treasury Notes (TY) Futures Technical Analysis – August 19, 2015 Forecast

September 10-Year U.S. Treasury Notes are trading slightly better. The range is tight and volume is low ahead of today’s U.S. consumer inflation report, due to be released at 8:30 a.m. ET, and the latest Fed minutes at 2:00 p.m. ET.

The main trend is up on the daily chart, but the momentum has shifted to the downside. The main trend will turn down on a trade through 127’06.

The current price is 127’18.5. This puts the market on the weak side of a major Fibonacci level at 127’20.5. This price is controlling the direction of the market today.

A failure to overcome this level will signal the presence of sellers. The first downside target is a steep downtrending angle at 127’14.

The next target is a short-term uptrending angle at 127’05.5. This is followed by a support cluster at 127’01 to 127’00.

The daily chart opens up to the downside under 127’00 with the next major targets two main bottoms at 126’17.5 and 126’11. These area is followed by an uptrending angle at 126’05.

A sustained move over the major Fibonacci level at 127’20.5 will signal the presence of buyers. The first upside targets are 127’25.5, 127’30 and 128’02.

The angle at 128’02 is a potential trigger point for an upside breakout into the next angle at 128’12. This is the last potential resistance before the 128’22 main top.

Watch the price action and read the order flow at 127’20.5. This will tell us whether the bulls or the bears are in control.