Technical Update - Euro 10-year yields reaching levels not seen in almost a decade. But more to come

Ahead of ECB Emergency meeting today let’s have a look at Euro 10 Years Yields and Future from a technical perspective.

The Euro yields have been on rise since the beginning of 2022 and have now broken the long-term falling trend going back to the 1990’s.
Since 2008 it has formed a falling Wedge like pattern which is broke bullish out of last year. Yields are now close to reach 0.5 Fibonacci  retracement of the “peak to low” of the Wedge where there is some resistance. Expect minor correction around this level i.e. at around 1.95%.  Yields might try to break 2% but not unlikely to fail breaking above in first attempt. 
If breaking above 2% next key resistance is at the 0.764 retracement at around 3.35%. A level not seen since the Eurozone crisis in 2010-2011, where several emergency and bail out packages where issued and ECB started buying Government bonds. See timeline here https://www.bbc.com/news/business-13856580
However, according to the theory of Wedges the price should reverse to at least the peak of the Wedge (for a falling Wedge) i.e. in this case at it would be at around 4.6%. If that scenario unfolds it would be a yield level not seen since 2008 when the Liquidity/Financial crisis was unfolding. With regards to time line, it is always hard to predict but after the break out of a Wedge the move back to the top range of the Wedge is much faster than the time span of the building of the Wedge. Roughly 20-35% of the Wedge time line i.e. 2-4 years. Break out was a year ago.