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Several Key Technical Levels Under Severe Strain

After last week’s bond/equity rally and USD correction, markets might look for a new short‐term equilibrium. Several key technical levels are under severe strain. For the US 10‐y yield we look out whether the 4.5% area holds. The German 10‐y yield dropped below the 2.68% neckline, with the 2.56/60% area a next reference. For EUR/USD, 1.0764 (38% retracement July top/Oct low) is a key resistance. For bonds as well as for the USD correction, maybe the easy part of the move might be behind us. ....

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