We are going to look at the weekly and daily time frames.
Last week price action triggered a “Dark Cloud Cover” pattern ( bearish !) with its weekly closing level
below the Tenkan-Sen and the cluster (Kijun-Sen & MBB ) and also already within the weekly clouds support area .
RSI below 50, @ 47’98
This Dark Cloud Cover pattern neutralized the previous white candle (harami), I mentioned as a first warning signal in my previous analysis (see related ideas below) and therefore the door is reopen to the downside towards former low of 1.34% first and then probably lower.
Currently in an ongoing downtrend channel since the failure to upside breakout the clouds on a daily closing basis (Nov 29th).
Below the clouds, the Kijun-Sen, the MBB and the Tenkan-Sen.
RSI below 50 @ 42.44
The daily picture does not look very encouraging for the upcoming trading sessions and it is likely to see further downside towards 1.34% first and then towards the bottom line of the ongoing downtrend channel .
38.2% Fib ret @ 1.22%, 50% @ 1.05% and 61.8% @ 0.88%
In order to neutralise this ongoing (yield) downside pressure the US 10 Years should recover at least above 1.50 % – 1.55 %
Ironman8848 & Jean-Pierre Burki
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