10-Yr U.S. Treasury Notes (TY) Futures Technical Analysis – August 20, 2015 Forecast

September 10-Year U.S. Treasury Notes are trading higher shortly before the cash market opening. The pre-market rally is a continuation of yesterday’s reversal, which was fueled by the release of the latest Fed minutes from the July monetary policy meeting.

Based on the current price at 128’11, the nearest support is a price cluster formed by the short-term pivot at 127’00, the downtrending angle at 127’30 and the uptrending angle at 127’29.5. A sustained move over this zone will signal the presence of buyers.

If 127’29.5 fails as support then look for a possible acceleration to the downside with the Fibonacci level at 127’20.5 the next likely target. The daily chart opens up further with the next target a short-term uptrending angle at 127’07.5. This angle stopped the break on Wednesday. The next major target under this level is a price cluster at 127’02 to 127’01.

With the current price at 128’11, the next target is a short-term downtrending angle at 128’10. This is followed by an angle at 128’16. This is the last major angle before the 128’22 main top.

A sustained move over 128’22 will signal a resumption of the uptrend with the next major target the April 27 top at 129’05.

Watch the price action and order flow at 128’10 after the opening. Trader reaction to this price will likely determine the direction of the market during the cash market session.