Yesterday we were stopped out of our 5s30s flattener when the spread broke above our stop at 114.00bps, invalidating our trade setup in the process. Now the spread is probing key long term resistance at 115.3bps/117.9bps (1.5yr channel resistance and the 60d average). A break above this zone, particularly as momentum (MACD) rolls bullish would indicate basing and a medium term turn in trend from flattening to steepening. A break of the Jan-20 high at 122.1bps would confirm a base exposing the 4Q14 lows at 139.7bps.  

The material has been provided by InstaForex Company –