Chartbook: Chart GER 10 Year Yield: Prices under pressure
Anticipated minor gains have met selling interest at 2.707%, with prices pulling back towards congestion support at 2.300%.
Anticipated minor gains have met selling interest at 2.707%, with prices pulling back towards congestion support at 2.300%.
Rising monthly stochastics are flattening and the monthly Tension Indicator continues to fall, highlighting a cautious tone and room for further losses in the coming sessions.
A close below 2.300% will add weight to sentiment and open up critical support within the 1.887% year low of December 2023 and congestion around 2.000%.
A further break beneath here would confirm a significant top in place at the 3.024% multi-year high of October 2023 and signal a period of cheapening Yield prices, as focus then turns to support at the 1.522% Fibonacci retracement and 1.500% break level, via the 1.753 low of December 2022. Already oversold monthly stochastics could limit any initial tests in fresh range trade.
Meanwhile, resistance is at 2.707%,
and should cap any immediate tests higher as weekly charts also come under pressure.
A close above here, however, would turn sentiment cautiously positive and open up congestion around 2.800%.
But a further close above 3.000% - 3.024% is needed to confirm continuation of gains from the March 2020 low and open up a multi-month move towards 3.500%.