The Federal Reserve on Wednesday indicated that its interest-rate hiking cycle has ended and that lower borrowing costs are coming in 2024. This was more dovish than the market anticipated and the US 10Y yield has sold off further.
The short-term downtrend lies at 4.22% and while below here we will assume that the US 10Y yield remains under pressure. We would also highlight the erosion of the 200-day ma, which leaves the market on the defensive.
The market has sold off towards 3.93%, the current location of the 55-week ma and the 23.6% retracement of the entire move up from March 2020. This may provoke some near-term consolidation.
However, the market has also eroded its 2022-2023 uptrend, and this does leave it under pressure. Below 3.90% our attention reverts to the 20-month ma at 3.74%.
Disclaimer:
The information posted on Trading View is for informative purposes and is not intended to constitute advice in any form, including but not limited to investment, accounting, tax, legal or regulatory advice. The information therefore has no regard to the specific investment objectives, financial situation or particular needs of any specific recipient. Opinions expressed are our current opinions as of the date appearing on Trading View only. All illustrations, forecasts or hypothetical data are for illustrative purposes only. The Society of Technical Analysts Ltd does not make representation that the information provided is appropriate for use in all jurisdictions or by all Investors or other potential Investors. Parties are therefore responsible for compliance with applicable local laws and regulations. The Society of Technical Analysts will not be held liable for any loss or damage resulting directly or indirectly from the use of any information on this site.
The short-term downtrend lies at 4.22% and while below here we will assume that the US 10Y yield remains under pressure. We would also highlight the erosion of the 200-day ma, which leaves the market on the defensive.
The market has sold off towards 3.93%, the current location of the 55-week ma and the 23.6% retracement of the entire move up from March 2020. This may provoke some near-term consolidation.
However, the market has also eroded its 2022-2023 uptrend, and this does leave it under pressure. Below 3.90% our attention reverts to the 20-month ma at 3.74%.
Disclaimer:
The information posted on Trading View is for informative purposes and is not intended to constitute advice in any form, including but not limited to investment, accounting, tax, legal or regulatory advice. The information therefore has no regard to the specific investment objectives, financial situation or particular needs of any specific recipient. Opinions expressed are our current opinions as of the date appearing on Trading View only. All illustrations, forecasts or hypothetical data are for illustrative purposes only. The Society of Technical Analysts Ltd does not make representation that the information provided is appropriate for use in all jurisdictions or by all Investors or other potential Investors. Parties are therefore responsible for compliance with applicable local laws and regulations. The Society of Technical Analysts will not be held liable for any loss or damage resulting directly or indirectly from the use of any information on this site.
The STA is the oldest technical analysis organisation in the world and to celebrate that fact, we have a free downloadable book on technical analysis here -
www.technicalanalysts.com
www.technicalanalysts.com