Overbought US Bonds Destined for Major Correction
The Dollar's been killing everything this whole year, but I think that's about to change. This week the US 10 YR's could fall away from the high price reached in May and start falling back down towards demand. Every time frame down to the 15 minute chart --there's an ascending triangle forming just inside the supply zone on the 4hr and 15-minute charts--seems to confirm the end of the 10 YR's bullish momentum at least for the next few months, which I think will be mirrored in the Forex market as well.
The US 10 YR and EURUSD are negatively correlated, thus, a sharp fall in US 10 YR could coincide a very sharp upturn for the struggling Euro.
The US 10 YR and EURUSD are negatively correlated, thus, a sharp fall in US 10 YR could coincide a very sharp upturn for the struggling Euro.
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