Technical Analysis

US 10 year yield cracks below its 100 day moving average

The US 10 year yield has fallen to a low of 3.408% today is currently trading at 3.448%. The move to the downside was strong enough to take the yield back below its 100 day moving average of 3.494%. The last time the yield traded below the 100 day moving averages back on August 19.

US 10 year yield falls below support at 3.495% level

The move to the downside also fell below the swing high yields going back to June at 3.495%. On September 20, the yield moved above that level and based against it on September 21 before starting the climb to the high reached on October 21 at 4.335%

The 3.5% area was important in the past and the return to it has traders mulling the area again.

The question is “With the Fed looking toward 5% and potentially above to stop inflation, is 3.5% too low?”

The level will now be close resistance for traders.

On the downside, getting and staying below the 50% at 3.426% is the next downside hurdle.

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