Technical Technical Technical

Technical Update - US 10 years Yields. Breaking key resistance, set for higher levels

Commodities 3 minutes to read
KCL
Kim Cramer Larsson

Technical Analyst, Saxo Bank Group

Source: Saxo Group

Monthly chart shows the Future dipped just below the key strong support at 114 21/32. A close below is needed for selling pressure to resume. If the US T-Note future closes below 114 20/32 next support is around 111 and strong support at 104.
RSI with a current value of 18.40, has not been this low since January 2000 showing massive oversold scenario. However, it should be noted that RSI can still drop further

Source: Saxo Group

The sell-off in the Treasury future means that the yields propelled higher above 3.4%. Minor correction should be expected but trend is up

Source: Saxo Group

Zooming out looking at the longer-term picture Yields have broken above 2018 peak at 3.25%. With just minor resistance around 4% US 10 Treasury yields could go to 4.38% in Q3 but no strong resistance until around 5.25% between 1.618 and 1.764 projection from the 2018-2020 down trend.
If that level is reached Yields will be back at pre-Financial crisis level

Source: Saxo Group

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