Chartbook: Chart GER 10 Year Yield: Choppy above critical support - monthly studies under pressure

Little change, as prices extend cautious/choppy trade above congestion support at 2.000%.

Oversold monthly stochastics are edging higher, suggesting potential for further consolidation into the coming month.

However, the monthly Tension Indicator continues to track lower and longer-term studies are also under pressure, highlighting a background bearish tone and room for further price weakening into early 2025.

A close below critical support at the 1.887% year low of December 2023 is needed to complete a multi-month distribution top and confirm a significant top in place at the 3.024% year high of October 2023. Focus will then turn to next significant support within congestion around 1.500% and the 1.522% Fibonacci retracement. Already oversold monthly stochastics could limit any initial tests in fresh range trade.

Meanwhile, resistance is at the 2.350% break level.

A fresh monthly close above here would provide short-term stabilisation, but negative weekly studies should limit scope in renewed consolidation beneath the 2.707% current year high of May 2024.

An unexpected close above here is needed to turn price action cautiously positive and open up a test of critical resistance at  congestion around 3.000% and 3.024%. Further continuation beyond here would reinstate bullish sentiment and confirm continuation of the bull trend from the -0.908 all-time low of March 2020.