Ten-Year Government of Canada Bond held with in the previous days range holding on to 133.61/55 support but the outlook does remain weak. The market is in a clear down trend so a break lower would not be a surprise today and could test 133.19/13 this week. If this does not offer good support we look for 132.81/76 as the next downside target.
As we look in to February we have a realistic downside target of 132.37/09 for this month but good support here should be a buying opportunity.
Any rally through yesterday’s high of 133.65 meets resistance at 133.94/97 but a push through here should then target 134.18 with further resistance above at 134.38.