What are the technicals saying
The US yields are up strongly today with the 10 year yield up 6.75 bps to 2.3032%. The high reached 2.3121%.
The move higher took the price above the September highs and trades at the highest yield since early August 2017.
Technically, the pair based against the 100 day MA at the start of the day (at 2.2331%) and has been trending higher Looking at the daily chart the pair is getting closer to a key target at the 2.2327% level. That is where both the 200 day MA AND the 50% of the move down form the December high cuts across. That combination is always a tough nut to crack. So there may be some apprehension.
ON the downside, the hourly chart moved above the high from September 20 at 2.287%. The yield has been using that old high, as support over the last 8 or so hours. A move below might take some of the upside steam out of the market.
So, overall yields are running a bit higher today but the race is getting a bit long, the run is tired, and key resistance lies ahead. On a break, there may be a second wind. Look for stops above the level, but expect to see some stall first.
