Technicals - US bond yields, US dollar, Dow Jones and S&P500

Angela Mangan

The US 10 year bond yields originally experienced a trend change (i.e. expectation for further upside) on 5/8/16 at 1.59%. Last night a further upside technical break above key resistance occurred, which indicates the potential for the next upward move in US bond yields. Major resistance is now located at 1.89% - the minimum expectation for an increase (refer to first chart below). This co-incided with the USD dollar index (DXY) also experiencing a secondary upside technical break last night. The minimum upside technical target is located at 99.80 (refer to second chart below). The USD/JPY generated a technical buy signal late last week, with the upside target located at 107.50. Relating to the key US indices, both the Dow Jones and S&P500 indices previously generated technical sell signals in early September and remain rated as technical sells, with the downside targets located at 17,480 and 2075 respectively.


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