10 year yield runs into some key support

Technical Analysis

And natural support at the 2.00% area.

The 10 year yield traded to the level since Septembe 8, 2017.  The low yield for the day reached 2.0517%.

Technically, the note is starting to test a key support area defined by the:

  • 61.8% retracement of the move up from the July 2016 low yield at 2.0596%
  • Swing low from September 8 at 2.0144%
  • Natural support level at the 2.00%. 

The yield has bounced off the low as traders take some profits against the risk defining level. We currently trade at 2.0844%, down -3.3 bps on the day.  

Drilling to the hourly chart below, the low today took out the low from Monday at 2.0590%.  The day started above the 100 hour MA (blue line) at 2.1096%.  A move back above that MA (a trend line is also near the level) will be eyed by traders looking for more confirmation that a temporary bottom is in place.  Above the 100 hour MA, and traders will be eyeing the 2.1452% high for the week, and the falling 200 hour MA at 2.1739%. Those levels should give traders cause for pause as traders ponder the Fed (and other macro trends).  

10 year yield on the hourly chart.


Products You May Like

Articles You May Like

Heads up: Fed vice chair Richard Clarida to speak in an interview later today
Micron shares drop after JP Morgan slashes price target on the chipmaker due to Huawei ban
My OVERNIGHT Trading Strategy (make PROFITS while you sleep)
Preparándonos para los primeros PMI de Europa
GBPUSD 360 – Zig-Zag Completion OR Further Decline

Leave a Reply

Your email address will not be published. Required fields are marked *