This is one of the key chart to watch if you are trading the EURUSD pair. The inverse relation between:
-U.S. 10 year yield Subtracted by German 10 year yield (Top chart)
-EURUSD (Bottom Chart)
A very simple chart that illustrates the inverse correlation between the 10yr us yield and german yield differentials and the EURUSD. if you follow the chart starting from the left, each upside directional move in the differential is accompanied with depreciation in the EURUSD. On the other hand, each decline in the differential is accompanied with a rise in the EURUSD.
The differential chart has recently broken the long term rising trend line, which was preceded by an earlier breakout below the key 1.96 level. A series of lower highs and lower lows has already established.
It seems that the differential are telling us that a breakout of the long term sideways range in the EURUSD might finally happen. keep an eye on this pair for a long term nice long setup.
Best
Technician
-U.S. 10 year yield Subtracted by German 10 year yield (Top chart)
-EURUSD (Bottom Chart)
A very simple chart that illustrates the inverse correlation between the 10yr us yield and german yield differentials and the EURUSD. if you follow the chart starting from the left, each upside directional move in the differential is accompanied with depreciation in the EURUSD. On the other hand, each decline in the differential is accompanied with a rise in the EURUSD.
The differential chart has recently broken the long term rising trend line, which was preceded by an earlier breakout below the key 1.96 level. A series of lower highs and lower lows has already established.
It seems that the differential are telling us that a breakout of the long term sideways range in the EURUSD might finally happen. keep an eye on this pair for a long term nice long setup.
Best
Technician
