U.S. 5 YEAR NOTE

U.S. government bonds are likely to rebound at the back of a risk-off environment. Weak commodities and equities helped cash and cash equivalents to gain strength over the past week. U.S. 5 year note provides good risk/reward in the short-term as it found support at a strong technical level and also rebounded with an outside day.  Outside days are days where the chart bar is both higher and lower than  that of the previous day. When the bar is both higher and lower than the previous day’s bar, it falls  outside the trading range of the previous day. This may indicate a change in the  general direction of the trend (in this case upwards). U.S. 5 year note rebounded from the horizontal support and the 200-day moving average. 123.65 level is the support. Upper boundary of the consolidation range is at 125 and price can target this level in the following days. Breakdown below 123.65 will reverse the positive technical outlook.